A billion-dollar investment is meant to prop up a money-losing unit before Uber makes its pitches ahead of a planned I. P. O.
SAN FRANCISCO — Uber’s autonomous vehicle unit is receiving a new investment, the company said late Thursday, just days before it begins pitching its business to public investors.
SoftBank, Toyota and the Japanese automaker Denso will put $1 billion toward Uber’s effort to develop autonomous cars. As Uber marches toward an I. P. O., the deal will help shield the company from tough questions about how the money-losing endeavor is harming its profit prospects.
The self-driving unit, known as the Autonomous Technology Group, or A. T. G., will be restructured as part of the deal, allowing for a targeted investment rather than a broad investment in Uber, a ride-hailing giant with a number of smaller businesses. The self-driving group will answer to its own corporate board, made up of representatives from Uber, SoftBank and Toyota, with Uber maintaining majority control.
The deal values this unit at $7.25 billion, the company said. Toyota and Denso’s investment totals $667 million, while SoftBank’s is $333 million.
“The development of automated driving technology will transform transportation as we know it, making our streets safer and our cities more livable,” Uber’s chief executive, Dara Khosrowshahi, said in a statement.
