Uber is reportedly looking to sell its self-driving division

Uber is in talks to sell its scandal–ridden the self-driving vehicle branch, Advanced Technologies Group, according to a Friday TechCrunch relationship. And it looks like Aurora Innovation, a startup founded by veterans of the self-driving vehicle industry, is the first in line to collect the “award”.

Sources familiar with the negotiations told the outlet that Uber “shopped” ATG, which bears the sad distinction of the world’s first registered fatal self-driving car accident, to several potential buyers and Aurora seems to be the clear precursor. Although the terms of the deal are still unknown, sources say the negotiations are “very far in the process” and that the two companies have been in talks since October.

Spokesmen for both companies declined TechCrunch’s request to comment on the matter. But the move would be in line with Uber’s recent downsizing, spurred in part by the heavy financial blow from the covid-19 pandemic. So far this year it has sold its electronic transport arm, Jumpingand insert a file $ 500 million stake in its logistics division, Uber Freight, on the market. And according to his most recent earnings report, Uber posted net losses of $ 303 million for its “ATG and other technologies” segment in the nine months ended September 30, 2020.

So it would make sense that Uber is trying to wash ATG’s hands, and not just for financial reasons. Several accidents, including a fatal accident in 2018, revealed serious flaws in the technology that powers Uber’s self-driving vehicles and left its public image in tatters. Former branch boss Anthony Levandowski was also fired amid a massive legal battle between Uber and Google’s self-driving segment Waymo over stolen technology. He was subsequently sentenced to 18 months in prison for theft of trade secrets.

In 2019, Uber ATG was rated at $ 7.25 billion, but sources told TechCrunch that the division was “facing a potential downturn,” which may have prompted the company to start looking for buyers. Two of Uber’s biggest investors, SoftBank and Benchmark, have also lobbied the company to revamp its self-driving arm and bring in more outside investment, according to a September. Bloomberg report.

Aurora was founded in 2017 by three self-driving vehicle industry veterans who previously ran programs at Google, Tesla, and Uber. It raised more than $ 760 million from high-profile investors, including Amazon, Hyundai and T. Rowe Price, to Business Insider. While that sum is nothing to sneeze at, it’s still much less than ATG’s $ 1 billion price, so any deal would likely require outside investment or the granting of Uber partial equity in the acquisition.