The End of a Dream: Uber Sells Its Autonomous Car and Flying Taxi Division

The private transport platform prefers to focus on the businesses that are paying off: passenger transport and food delivery.
The End of a Dream: Uber Sells Its Autonomous Car and Flying Taxi Division
Image credit: Cortesía de Uber

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Entrepreneur Staff
2 min read
This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Yesterday it was announced that Uber has officially sold its autonomous car division to startup Aurora. Now, the private transport platform has reached an agreement for Joby Aviation to acquire Uber Elevate, its fleet of flying taxis.

After years of trying to get their air taxi business off the ground, Uber finally chose to leave the project to focus on what has worked for them: passenger transport and food delivery.

As Joby Aviation announced , the agreement implies an investment of 75 million dollars by Uber in the company, in addition to the 50 million it invested last January. In addition, the air transport company will be able to use the Uber app for customers to hire their flying taxis . The idea is to cooperate with each other to offer both ground and air services for the clients of both services.

"We are excited that their transformative mobility solution is available to the millions of customers who trust our platform," said Dara Khosrowshahi, Uber's chief executive officer in a statement regarding the agreement with Joby.

 

Image: Joby Aviation

Joby Aviation is a California-based company that is developing its own VTOL (personal air vehicle) taxis . For now, the company has a fully electric air vehicle with capacity for four passengers and the pilot. It can travel around 240 kilometers at a speed of more than 300 km / h. They estimate that they will have their service ready with the first VTOLs flying by 2023.

Earlier this week, Uber sold its autonomous vehicle division to Aurora Innovation Inc. for $ 4 billion. As part of the agreement, Uber will make an investment of 400 million dollars in cash in the company, which will control 26% of the shares.

Both transactions are a relief for Uber, as both the autonomous car and flying taxi divisions have required a lot of investment in recent years and would represent more capital flight before seeing profits.

See also: Aptera, the solar electric car that does not need to be recharged and you can set aside with 2 thousand pesos

More from Entrepreneur
Entrepreneur Select: A Fund For Entrepreneurs, By Entrepreneurs

Entrepreneurs require more than just money, which is why we aim to empower you, as well as act as a catalyst for value creation.

Entrepreneur Insider members enjoy exclusive access to business resources for just $5/mo:
  • Premium articles, videos, and webinars
  • An ad-free experience
  • A weekly newsletter
  • A 1-year Entrepreneur magazine subscription delivered directly to you
Make sure you’re covered for physical injuries or property damage that occur at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business

Latest on Entrepreneur