Investors led by SoftBank Group Corp and Toyota Motor are in talks to invest at least US$1bn into Uber Technologies’ self-driving vehicle unit which would value the unit at $5bn to $10bn, two sources told the Reuters news agency.

The report said the investment would provide a cash injection for Uber’s self-driving programme which is costing the money-losing startup hundreds of millions of dollars without generating revenue and could also help underscore Uber’s value as the ride-hailing firm prepares for a stock market debut in which its value could top $100bn.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Uber and SoftBank declined to comment to Reuters. A Toyota spokesman said the automaker “constantly reviews and considers various options for investment” but did not have anything to announce.

Earlier, The Wall Street Journal, which first reported the news, said a deal could be reached next month.

Reuters noted Toyota injected $500m into Uber last year to work on self-driving cars where both companies are seen as lagging rivals like [Google parent] Alphabet’s self-driving unit Waymo.

See Also:

Uber, which last year lost about $3.3bn, is betting on a move to self-driving cars to eliminate the need to pay drivers, Reuters said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

There was a setback last year after one of Uber’s self-driving cars struck and killed a pedestrian in Arizona. Prosecutors last week declined to pursue criminal charges.

Reuters said the challenge of developing the technology is leading to previously unlikely alliances, with SoftBank and Toyota partnering up in Japan. SoftBank has also invested $2.25bn in General Motors‘ self-driving unit Cruise which has also received funds from Honda Motor.