SoftBank, other investors in late-stage talks to invest US$1 billion in Uber’s self-driving unit


The investors would take a minority stake, valuing the unit at between US$5 billion and US $10 billion. (Wall Street Journal)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: The move would shore up Uber’s self-driving unit ahead of its IPO, which is expected this year. It would also provide Uber with cash for the venture: the company spent US$750 million on self-driving car development in 2017, though it has since cut back. Some investors have expressed concern about the steady flow of cash going into a long-term bet that isn’t bringing in revenue for the company. Accepting a minority investment would let others cover the cash needs in the short term, although that US$1 billion won’t last long. For SoftBank, the cash injection protects the much-larger investments it’s already made in the company—in December 2017, it purchased a 15 per cent stake in Uber for US$7 billion at a US$48-billion valuation. The company is now looking to go public at a valuation that could be as high as $120 billion.