Toyota Motor Corp. is likely to expand its alliance with Uber Technologies Inc. This alliance is taking place through a new plan and investment to bring self driving cars on the road. This Japanese automaker will be investing around $500 mn in this deal.
This deal will value the new ride hailing company at $72 bn, the source said that does not wish to be identified due to the private details. As a part of the deal, Sienna vehicles will be manufactured by Toyota, clubbed with self-driving technology by Uber and another company. These two companies will operate the fleet, according to the source. The third partner has not yet been identified.
Spokesmen from both Toyota and Uber have declined to comment in the matter.
However, the Wall Street Journal has reported the investment earlier on Monday. The details regarding the driverless car partnership has not yet been reported by anyone. This deal has led Uber’s paper valuation to rise by 15 %. This rise in valuation and worth of shares matches to Alphabet Inc.
Waymo has also settled a lawsuit over self driving cars after Uber. A group of investors had valued $62 bn for Uber earlier this week. Uber has successfully developed a pronged strategy for self-driving. Uber has purchased Volvos and have retrofitted the cars with their own self driving technology. Uber operates these fleets on their own.
Daimler AG has announced that it will own and run on Uber’s network its own self driving cars. Uber will license technology for Toyota as Toyota will become the third pillar after the deal.