Uber is selling off its self-driving car group

Uber is selling off its self-driving car group

 

Uber is selling its self-driving car division to autonomous vehicle startup Aurora. People familiar with the deal say Uber will invest $400 million in Aurora and end up with a 26% stake in the company.

Like every transportation company, Uber has been struggling during the pandemic (it cut 25% of its staff). Uber says this move will help it achieve profitability in 2021, which is good for Uber shareholders, but what does this say about the future of autonomous fleet vehicles?

Self-driving cars are just over the horizon. Does Uber have a future in a world of AVs? What about the cliché, “the biggest rental car company doesn’t own a car”? That may be the driving force (pardon the pun) behind the sale of these assets. Uber’s operating model doesn’t work (financially speaking) if they have to own the cars. I wrote about this a while back. Check out “Uber and Lyft Are Doomed.”

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it.

About Shelly Palmer

Shelly Palmer is a business advisor and technology consultant. He helps Fortune 500 companies with digital transformation, media and marketing. Named LinkedIn's Top Voice in Technology, he is the host of the Shelly Palmer #strategyhacker livestream and co-host of Techstream with Shelly Palmer & Seth Everett. He covers tech and business for Good Day New York, writes a weekly column for Adweek, is a regular commentator on CNN and CNBC, and writes a popular daily business blog. Follow @shellypalmer or visit shellypalmer.com

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