Japan’s top automaker Toyota, auto parts maker Denso and internet company SoftBank‘s investment fund are investing $1 billion in car-sharing Uber‘s technology unit.
The Japanese companies said Friday that Toyota Motor Corp. and Denso Corp. will together invest $667 million and SoftBank Corp.’s Vision Fund will contribute $333 million in Uber Technologies Inc.’s new entity, Advanced Technologies Group, or Uber ATG, which will try to develop and commercialize automated ridesharing services.
The move comes as Toyota steps up such efforts, including investing $500 million in Uber, based in San Francisco, and setting up a $20 million joint venture with SoftBank to create mobility services, both announced last year.
Toyota also promised to contribute up to $300 million more over the next three years for developing next-generation autonomous vehicles and services.
Toyota Executive Vice President Shigeki Tomoyama said working together will help bring down costs and speed up development.
Uber Chief Executive Dara Khosrowshahi expressed hope that the deal, set to close by the third quarter, will help maintain Uber’s leading position in the technology.
