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Recalling my recent article on Uber‘s pervasive presence across the autonomous vehicle landscape, the Financial Times has now quantified this extensive involvement. Their analysis, based on public records and insider conversations, reveals Uber has pledged over $10 billion towards acquiring autonomous vehicles and investing in the companies developing this technology. Approximately $2.5 billion constitutes direct investments, while the remaining $7.5 billion is earmarked for purchasing robotaxis in the coming years, as detailed by the publication.
Our past coverage highlights Uber’s extensive portfolio of investments and collaborations with autonomous vehicle firms, spanning drones, robotaxis, and freight services. Notable examples of these investments include WeRide, Lucid and Nuro, Rivian, and Wayve.
This considerable sum, especially the $7.5 billion allocation, prompts a reflection on a previous pivotal period in Uber’s history, where it similarly embraced an asset-intensive strategy. Though Uber initially aimed for an asset-light model, it diverged sharply from this course for a time.
Between 2015 and 2018, Uber embarked on an ambitious expansion of experimental projects. This included establishing electric air taxi venture Uber Elevate and its internal autonomous vehicle division, Uber ATG, which was further enhanced by the 2016 acquisition of Otto. Additionally, in 2018, it acquired the micromobility company Jump.
However, in 2020, Uber reversed its asset-heavy course, seemingly abandoning these ambitious projects. The company divested Uber ATG to Aurora, transferred Jump to Lime, and sold Elevate to Joby Aviation. Importantly, while shedding these units, Uber maintained equity positions in each.
Uber is currently embarking on a distinct, asset-intensive chapter. Rather than investing substantial capital in internal technology development – though R&D undoubtedly continues within the company – its strategy now centers on acquiring (or potentially leasing) the physical assets themselves.
This shift could introduce noteworthy entries on Uber’s future balance sheets.
Operating fleets of robotaxis manufactured by external companies may deviate from Uber’s initial concept, and even its former CEO Travis Kalanick acknowledged an error in discontinuing its AV development. Nevertheless, this revised strategy holds the potential to achieve Uber’s ultimate objective.
Whispers from the Wire
Earlier this month, I spoke with Jiten Behl, a partner at Eclipse, regarding their recently launched $1.3 billion fund and its investment focus. As previously covered, the firm plans to foster additional startups, having already supported ventures like the Rivian spinout, Also. Behl remained tight-lipped on specifics, only revealing, “We’re definitely working on a couple of really cool ideas.” He further noted Eclipse’s keen interest in enterprise-focused startups.
A reliable source, combined with diligent research by senior reporter Sean O’Kane, suggests an upcoming seed round announcement for a San Francisco-based startup. This company is reportedly developing an autonomous hauler without a driver cab, reminiscent of Einride’s design. We await further details as the vehicle remains unseen.
While the company’s team is compact, it boasts an impressive lineup of Silicon Valley tech veterans, featuring a founder with experience from Uber ATG, Pronto, and Waabi. Expect further updates soon.
Have a lead for us? Reach Kirsten Korosec via email at [email protected] or Signal at kkorosec.07, or contact Sean O’Kane at [email protected].
Recent Investments!
Slate has secured additional funding as it aims to commence production of its inaugural affordable electric pickup trucks by late 2026.
The EV startup, initially supported by Jeff Bezos, successfully raised an additional $650 million in a Series C round spearheaded by TWG Global. TWG, led by Guggenheim Partners CEO Mark Walter (also the owner of the Los Angeles Dodgers) and investor Thomas Tull, is a firm to watch.
With this latest infusion, Slate’s total funding approaches $1.4 billion. Its earlier investors include General Catalyst, Jeff Bezos’ family office, Slauson & Co., and former Amazon executive Diego Piacentini, as TechCrunch exclusively reported last year.
Further notable transactions …
San Francisco-based Glydways, a company innovating personal autonomous pods for dedicated 2-meter city lanes, secured $170 million in a Series C funding round. This round was co-led by Suzuki Motor Corporation, ACS Group, and Khosla Ventures, with contributions from existing investors Mitsui Chemicals and Gates Frontier, plus new participant Obayashi Corporation. And there’s more to come.
Reports indicate that GM and Ford are in discussions with the Pentagon, exploring potential automotive industry assistance to modernize military procurement. The goal is to identify more cost-effective and rapid methods for acquiring vehicles, armaments, and other equipment, according to anonymous sources cited by the New York Times.
San Francisco startup Loop secured $95 million in a Series C funding round. The round was spearheaded by Valor Equity Partners and the Valor Atreides AI Fund, with additional participation from 8VC, Founders Fund, Index Ventures, and J.P. Morgan’s Growth Equity Partners.
Monarch Tractor, known for its electric, autonomous agricultural vehicles, has been acquired. Following difficulties in transitioning to a software-as-a-service model, the startup’s assets were purchased by Caterpillar.
According to the Financial Times, Uber is expanding its ownership in Delivery Hero by an additional 4.5%. Uber has reached an agreement to purchase approximately 270 million euros worth of shares from Prosus, the Dutch investment firm that holds the largest stake in Delivery Hero.
Key Headlines & Briefs
Doug Field, a prominent executive instrumental in shaping Ford‘s EV and technology directions over the last half-decade, is departing the company. Concurrently, Ford is undergoing an organizational restructuring, establishing a new “product creation and industrialization” team under COO Kumar Galhotra. Speculation abounds regarding Field’s next move; a return to Silicon Valley is a possibility.
All-electric RV innovator Lightship is enlarging its Colorado manufacturing facility by an additional 44,000 square feet, a move projected to quadruple its production capabilities.
The longstanding collaboration between Rivian and battery recycling firm Redwood Materials is now yielding tangible results. Redwood is implementing a battery energy storage system at Rivian’s Illinois factory. Notably, this system incorporates 100 second-life Rivian battery packs, providing 10 megawatt-hours (MWh) of dispatchable energy to lower costs and alleviate grid strain during periods of high demand.
Tesla has launched a new self-driving application designed to streamline Full Self-Driving software subscriptions for owners and provide usage statistics. While not groundbreaking, the gamified nature of these new metrics is noteworthy.
As is often the case, Waymo has been active this week. The Alphabet subsidiary initiated public road testing of its autonomous vehicles in London and eliminated its waitlists in Miami and Orlando, aiming to expand its robotaxi offerings in both locations.
And Finally …
My interest in robotics extends beyond this newsletter; my podcast, The Autonocast, is also increasingly focusing on this domain as the fields of autonomous vehicles, AI, and robotics converge. Consider listening to this interview with Adrian MacNeil, founder of Foxglove and former Cruise employee.