Uber Sells Off Self-Driving and Flying Taxi Units
Uber sells its self-driving unit to Aurora
Uber's self-driving unit, Advanced Technologies Group (ATG), is being acquired by its start-up competitor Aurora Innovation, the companies announced Monday.
The deal, expected to close in the first quarter of 2021, values ATG at approximately $4 billion. The unit was valued at $7.25 billion in Apr. 2019 when Softbank, Denso and Toyota took a stake.
[...] Uber's co-founder and former CEO Travis Kalanick had viewed self-driving as an essential investment, saying in 2016 he believed the world would shift to autonomous vehicles. ATG had been a long-term play for Uber, but the unit brought high costs and safety challenges. Throughout the course of a pandemic-stricken year, Uber has made efforts to stem losses in its ride hailing business, control business costs -- including with major layoffs in the spring -- and to grow its delivery business.
Uber is also reportedly selling its flying taxi division to Joby Aviation, presumably putting an end to its involvement with the U.S. Army.
Uber has been scaling back its driverless car efforts since it caused the death of a pedestrian in 2018. Uber has never had a profitable quarter.
Also at NYT, Ars Technica, TechCrunch, and The Verge.
Previously: The Fall of Uber CEO Travis Kalanick
Uber Pulls Self-Driving Cars After First Fatal Crash of Autonomous Vehicle
Uber Shutting Down Self-Driving Truck Division
Uber Allegedly Ignored Safety Warnings Before Self-Driving Fatality
Will Car Ownership Soon Become "Quaint"?
Uber Freezes Engineering Hires Amid Mounting Losses
Uber sells most of its self-driving car unit to Aurora
the Sydney Morning Herald and Bloomberg report that Uber has sold its self-driving car unit to Aurora, its former rival in self-driving car development.
Aurora will acquire the employees and technology behind Uber's Advanced Technologies Group in an equity transaction, the companies said on Monday (US time).
Uber will invest $US400 million ($539 million) into Aurora, and Uber's CEO Dara Khosrowshahi will join Aurora's board of directors, the companies said.
After the transaction, Aurora will be worth $US10 billion and Uber will hold 26 per cent stake in the company, said Chris Urmson, CEO of Aurora, in an interview.
"Our first product will be in trucking and freight, but we look forward to taking this great team that we have and accelerating that while continuing working on light vehicles and ride-haling, and we'll ultimately see our vehicles deploying on the Uber network," Urmson said.
Uber will not have exclusive rights as a ride-hailing company to Aurora's technology, but the two companies will have a "preferred relationship," Urmson said.
Uber's revenues have been pummelled by the coronavirus pandemic.
Related Stories
The Fall of Travis Kalanick Was a Lot Weirder and Darker Than You Thought
A year ago, before the investor lawsuits and the federal investigations, before the mass resignations, and before the connotation of the word "Uber" shifted from "world's most valuable startup" to "world's most dysfunctional," Uber's executives sat around a hotel conference room table in San Francisco, trying to convince their chief executive officer, Travis Kalanick, that the company had a major problem: him.
[...] [A] top executive excused herself to answer a phone call. A minute later, she reappeared and asked Kalanick to step into the hallway. Another executive joined them. They hunched over a laptop to watch a video that had just been posted online by Bloomberg News: grainy, black-and-white dashcam footage of Kalanick in the back seat of an UberBlack on Super Bowl weekend, heatedly arguing over fares with a driver named Fawzi Kamel. "Some people don't like to take responsibility for their own shit!" Kalanick can be heard yelling at Kamel. "They blame everything in their life on somebody else!"
As the clip ended, the three stood in stunned silence. Kalanick seemed to understand that his behavior required some form of contrition. According to a person who was there, he literally got down on his hands and knees and began squirming on the floor. "This is bad," he muttered. "I'm terrible." Then, contrition period over, he got up, called a board member, demanded a new PR strategy, and embarked on a yearlong starring role as the villain who gets his comeuppance in the most gripping startup drama since the dot-com bubble. It's a story that, until now, has never been fully told.
The article discusses a number of Uber and Kalanick scandals/events, including:
- The #DeleteUber movement following Uber being accused of breaking up an airport taxi strike (which was in protest of President Trump's executive order restricting travel from Muslim countries), as well as Kalanick's decision to join President Trump's business advisory council (and later leave it).
- Susan Fowler's blog post recounting sexual harassment at Uber, and the hiring of former U.S. attorney general Eric Holder to investigate the claims.
- The revelation of Uber's Greyball system, which was used to avoid picking up law enforcement and taxi inspectors.
- Uber's purchase of self-driving truck startup Otto, which eventually led key Uber investor Google (Waymo) to sue Uber, seeking billions in damages.
- Kalanick's "inexplicable" support of Anthony Levandowski, who he called his "brother from another mother", even after Levandowski stopped defending Uber in the Waymo v. Uber case.
- Kalanick's apology to the taxi driver Fawzi Kamel, which amounted to a $200,000 payoff.
- A visit to a Seoul escort-karaoke bar that resulted in an HR complaint and a report in The Information.
- Uber's president for Asia-Pacific Eric Alexander obtaining a confidential medical record of passenger who was raped by an Uber driver in Delhi, India. Alexander, Kalanick, and others discussed a theory that their Indian competitor Ola faked/orchestrated the rape.
- Kalanick making his presence known during a "leave of absence" by trying to maintain control over the company and its board.
- Arianna Huffington promoting her wellness company's products while acting as Kalanick's apparent proxy on the board.
- The new CEO Dara Khosrowshahi's response to the city of London revoking Uber's operating license.
A self-driving Uber SUV struck and killed a pedestrian in Tempe, Arizona. It was in autonomous mode at the time of the collision, with a vehicle operator behind the wheel. Uber has suspended testing of its self-driving cars.
http://money.cnn.com/2018/03/19/technology/uber-autonomous-car-fatal-crash/index.html
https://www.nytimes.com/2018/03/19/technology/uber-driverless-fatality.html
https://finance.yahoo.com/news/self-driving-uber-kills-arizona-171055918.html
https://www.npr.org/sections/thetwo-way/2018/03/19/594950197/uber-suspends-self-driving-tests-after-pedestrian-is-killed-in-arizona
https://www.wsj.com/articles/uber-suspends-driverless-car-program-after-pedestrian-is-struck-and-killed-1521480386
https://www.theverge.com/2018/3/19/17139518/uber-self-driving-car-fatal-crash-tempe-arizona
https://techcrunch.com/2018/03/19/uber-self-driving-test-car-involved-in-accident-resulting-in-pedestrian-death/
I couldn't find any good analysis of the liability situation here.
Uber's controversial self-driving truck division shuts down
Uber is shutting down its self-driving truck program, the company acknowledged on Monday. It's the latest example of Uber scaling back its self-driving technology efforts in the wake of a deadly Uber self-driving car crash in March.
Uber's self-driving truck program has been embroiled in controversy since Uber acquired the unit two years ago. The acquisition price was reportedly $680 million, though the actual cost may have been much less than that. Previously, it had been a startup called Otto, led by controversial ex-Waymo engineer Anthony Levandowski. Waymo sued Uber, arguing that Levandowski had taken Waymo trade secrets with him on the way out the door.
[...] "We've decided to stop development on our self-driving truck program and move forward exclusively with cars," said Eric Meyhofer, the leader of Uber's self-driving technology program, in a statement to The Verge. Personnel from the truck division will be folded into the company's self-driving car efforts.
Previously: Uber Buys Autonomous Truck Startup Otto
The Fall of Uber CEO Travis Kalanick
Uber Pulls Self-Driving Cars After First Fatal Crash of Autonomous Vehicle
Submitted via IRC for SoyCow1984
Uber allegedly ignored safety warnings before self-driving fatality
Just days after Uber announced its plans to resume testing of its self-driving taxis, new information reveals that a whistleblower had made the company aware of the technology's safety failures before the incident in Arizona last March, which saw a pedestrian struck and killed by one of Uber's vehicles, and which led to the suspension of all testing activity.
According to The Information, Robbie Miller, a manager in the testing-operations group, sent a cautionary email to a number of Uber's executive and lawyers, warning that the vehicles were "routinely in accidents resulting in damage. This is usually the result of poor behavior of the operator or the AV technology."
It appears the email was prompted by an incident in Pittsburgh, where just a few days before Miller sent the message an Uber prototype swerved completely off the road and onto the sidewalk, where it continued to drive. According to Miller's email, the episode was "essentially ignored" for days, until Miller raised it with other managers. He also noted that towards the end of 2017, it took two weeks for engineers to investigate the logs of a separate Arizona incident, in which an Uber vehicle almost collided with another car.
Opinion: Owning a Car Will Soon Be as Quaint as Owning a Horse
I will die before I buy another car. I don't say that because I am particularly old or sick, but because I am at the front end of one of the next major secular trends in tech. Owning a car will soon be like owning a horse — a quaint hobby, an interesting rarity and a cool thing to take out for a spin on the weekend.
Before you object, let me be clear: I will drive in cars until I die. But the concept of actually purchasing, maintaining, insuring and garaging an automobile in the next few decades? Finished.
[...] It's obviously an easier decision if you live near a major metropolitan area, like I do, where the alternatives — cars and then car pools and then bikes and now scooters — are myriad. (Why, by the way, this is a revolution led by private companies instead of public transportation is an important topic for another day.) In other countries, often with denser populations, there are even more ideas bubbling up, from auto-rickshaws and motorbike taxis to new bus services.
Obviously, the biggest change will be the advent of truly autonomous vehicles, which are still years or even decades in the future. But in the meantime I am going to lean into this future all I can, and will chronicle the efforts over the next year, its costs and its benefits and how I get there. Or not.
Uber is freezing hiring for software engineers and product managers across its US and Canadian workforce, the company acknowledged to Bloomberg on Friday. The shift was reported by Yahoo earlier in the day. The freeze does not apply to Uber's autonomous vehicle and freight shipping divisions.
The news comes a day after Uber reported second quarter operating losses of $5.4 billion—a new record for the company. That figure exaggerates Uber's quarterly burn rate because it includes more than $4 billion in one-time charges related to Uber's initial public offering. Still, excluding IPO-related charges still leaves around $1.2 billion in operating losses, worse than the $1 billion the firm lost in the first quarter.
Uber recently laid off 400 marketing workers. According to Yahoo, Uber employees are worried that this could be a prelude to broader cuts as the company's struggles to stem its losses.
U.S. Army looks to use silent technology for next-generation aircraft:
The U.S. Army has announced that its researchers in cooperation with Uber research lab are working on silent and efficient VTOL, or vertical takeoff and landing operation, for the next generation fleet of Army air vehicles.
Currently, stealthily moving of troops and supplies is Army modernization priorities for future vertical lift aircraft.
The U.S. Army Combat Capabilities Development Command (DEVCOM), Army Research Laboratory, researchers collaborated with Uber and the University of Texas at Austin to investigate the acoustic properties of electric vertical takeoff and landing aircraft, which use distributed electric propulsion to power flight.
According to a recent team's paper published in the Vertical Flight Society 76th Annual Forum Proceedings, these eVTOL vehicles may aid the Army with important tasks such as aerial surveillance and cargo transport; however, they feature smaller rotors than traditional helicopters. As a result, eVTOL rotors may emit a different sound signature that researchers will have to take into consideration.
Initial experimentation of this concept has revealed the potential for stacked co-rotating rotors be significantly quieter than traditional paired rotor approaches and improve performance for a flying craft. To date, stacked co-rotating rotors have not been deployed in existing flying craft.
'Peak hype': why the driverless car revolution has stalled:
By 2021, according to various Silicon Valley luminaries, bandwagoning politicians and leading cab firms in recent years, self-driving cars would have long been crossing the US, started filing along Britain's motorways and be all set to provide robotaxis in London.
1 January has not, however, brought a driverless revolution. Indeed in the last weeks of 2020 Uber, one of the biggest players and supposed beneficiaries, decided to park its plans for self-driving taxis, selling off its autonomous division to Aurora in a deal worth about $4bn (£3bn) – roughly half what it was valued at in 2019.
The decision did not, Uber's chief executive protested, mean the company no longer believed in self-driving vehicles. "Few technologies hold as much promise to improve people's lives with safe, accessible, and environmentally friendly transportation," Dara Khosrowshahi said. But more people might now take that promise with a pinch of salt.
Prof Nick Reed, a transport consultant who ran UK self-driving trials, says: "The perspectives have changed since 2015, when it was probably peak hype. Reality is setting in about the challenges and complexity."
(Score: 4, Touché) by FatPhil on Wednesday December 09 2020, @09:12AM (7 children)
So, time to die?
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 2) by PiMuNu on Wednesday December 09 2020, @09:20AM (3 children)
1. Reputational damage too high. Dump it into a subsidiary to reduce the damage.
2. Possibility of success too remote. Dump to a subsidiary to try to get some return on investment before the "self-driving" ship sinks.
(Score: 3, Interesting) by FatPhil on Wednesday December 09 2020, @09:49AM (2 children)
0) It wasn't "basically existential" in the first place. The CEO was full of shit. But, hey, he needed some puffed-up justification for his decisions, and that phrase kinda sounded good at the time.
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 0) by Anonymous Coward on Wednesday December 09 2020, @05:11PM (1 child)
It was existential to boost IPO values.
(Score: 2) by FatPhil on Thursday December 10 2020, @01:55AM
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves
(Score: 0) by Anonymous Coward on Wednesday December 09 2020, @09:42AM
Basically...
(Score: 2) by TheRaven on Wednesday December 09 2020, @10:45AM
sudo mod me up
(Score: 4, Insightful) by takyon on Wednesday December 09 2020, @10:51AM
Uber wasn't doing such a good job at developing self-driving cars. Perhaps outsourcing it won't actually delay the introduction of a driverless Uber service, and could even improve it. Uber will have a substantial stake in Aurora, and in the future they could simply purchase driverless vehicles or conversion kits as needed. They will face competition from Waymo and others, but people are already in the habit of using the Uber app.
Like many unicorns, Uber planned to lose money. But they are losing even more money than they had planned to. Uber
believedclaimed [reuters.com] they would be profitable by this quarter, but those projections were made before the pandemic.As the largest shareholder, SoftBank may be influencing these decisions, since SoftBank's Vision Fund was wrecked by the pandemic (although it appears to have recovered [reuters.com]).
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 4, Insightful) by legont on Wednesday December 09 2020, @11:00AM
Uber realized that humans are cheap, dirt cheap. As tech develops, humans will be even cheaper. Also, no flying cars anytime soon on any commercial scale..
"Wealth is the relentless enemy of understanding" - John Kenneth Galbraith.
(Score: 0) by Anonymous Coward on Wednesday December 09 2020, @04:27PM (3 children)
Looks like Uber isn't going to be contributing to this after all, "U.S. Army Looks to Use Silent Technology for Next-Generation Aircraft"
https://soylentnews.org/article.pl?sid=20/11/29/2223251 [soylentnews.org]
When management changes direction quickly (accept Army contract, then sell the division), it doesn't look good for the whole company.
(Score: 0) by Anonymous Coward on Wednesday December 09 2020, @05:13PM (1 child)
I talked to a finance guy, and he said that markets have binned Uber in with DoorDash - the only thing of value they really provide is delivering food to people scared of their shadows.
(Score: 0) by Anonymous Coward on Wednesday December 09 2020, @07:14PM
> delivering food to people scared of their shadows.
delivering food to people in high risk groups.
ftfy
(Score: 2) by takyon on Thursday December 10 2020, @04:43AM
Linked in the summary. I guess Joby Aviation will take that contract over.
But you know what else doesn't look good? Never having a single profitable quarter. Actually, that looks great to some in Silicon Valley.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]