Top

Uber ATG-Aurora Deal is Win-Win for Both

Uber is selling its self-driving division ATG to autonomous vehicle (AV) start-up Aurora. Uber will also take a 26% stake in Aurora and invest $400 million in the start-up. Considering the increasing competition in the self-driving sector and its uncertain future, it makes sense for Uber to sell its AV business unit. It can now focus on its core business. The stake in Aurora will ensure that Uber has continued access to the latest AV technologies, and Aurora gains from Uber’s experience in AVs.

Increasing competition

  • Competition in the global AV industry is increasing with many start-ups like Pony.ai, Zoox and Yandex giving tough competition to established players like Uber and Cruise. Investors are eyeing these start-ups due to their lower valuations and impressive improvements in AV technology. For instance, in the Uber ATG-Aurora deal, Uber ATG’s valuation has declined from $7.2 billion last year to $4 billion, while that of Aurora has increased from $3 billion to $10 billion.

Valuations of Key AV Companies in 2020

Counterpoint: Uber Aurora Deal Analysis

Mounting losses

  • Uber CEO Dara Khosrowshahi expects Uber’s return to profitability by 2021. However, Uber, like other ride-hailing companies, has been adversely affected by the COVID-19 pandemic, with people preferring personal vehicles over cabs. In 2020, the company cut its workforce by 6,700 to curb the losses due to the pandemic.
  • Selling off its unprofitable ATG division will help Uber to focus on its core business of ride-hailing and develop emerging revenue streams like food delivery. AVs have no immediate timeline for maturity. Companies like Ford and Cruise have already delayed their autonomous vehicle

Win-win deal

  • Uber takes a 26% stake in Aurora. This will ensure the company has access to latest AV technologies which could be implemented in its robotaxis in future.
  • Aurora, on the other hand, will get much-needed investment for the development of its autonomous platform. The company will also benefit from Uber’s ATG expertise and experience in developing AV platform. Moreover, Aurora can further build its association with Toyota and Denso (key investors in Uber) and implement its platform in Toyota vehicles.
Counterpoint research is a young and fast growing research firm covering analysis of the tech industry. Coverage areas are connected devices, digital consumer goods, software & applications and other adjacent topics. We provide syndicated research reports as well as tailored. Our seminars and workshops for companies and institutions are popular and available on demand. Consulting and customized work on the above topics is provided for high precision projects.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.