# Toyota will reportedly invest $500 million in Uber for self-driving car research



## jocker12 (May 11, 2017)

Toyota will invest $500 million in Uber in a deal that values the ride-hail giant at $72 billion, according to The Wall Street Journal. As part of the agreement, the two companies will work jointly on developing self-driving cars. That's a slightly higher valuation for Uber than what it got last December when Japan's Softbank acquired a 20 percent stake in the ride-hailing business.

The news comes as Uber has been scaling back its in-house self-driving car project in the wake of a fatal crash last March in Tempe, Arizona. A self-driving Uber vehicle struck and killed a 49-year-old woman as she was crossing the street. Spokespersons for Uber and Toyota did not immediately respond to a request for comment

This isn't the first time Toyota has invested in Uber. Back in 2016, the Japanese automaker announced it was forming a "strategic partnership" with the San Francisco-based company, in which Uber drivers can lease their vehicles from Toyota and cover their payments through earnings generated as Uber drivers. The deal also included an investment of an undisclosed amount.

Toyota, which is the world's largest car manufacturer, is taking self-driving technology very seriously. It recently established the Toyota Research Institute to develop AI technologies in two main areas: autonomous cars and robot helpers for around the home. Earlier this year, the automaker announced plans to build a gigantic, 60-acre facility in Michigan to test "edge case" driving scenarios with its autonomous vehicles that are too dangerous to perform on public roads. Toyota also plans to invest $2.8 billion in a new software company it created in order to develop software systems that can power fully self-driving vehicles.

Uber has another partnership with Volvo to use the Swedish automaker's SUVs for its self-driving technology. Following the crash in Tempe, it was revealed that Uber had disabled the automatic emergency braking in the vehicle. Federal investigators determined that had it been engaged, the feature likely would have prevented the crash.

https://www.theverge.com/2018/8/27/17787878/toyota-uber-investment-self-driving-car-research


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## goneubering (Aug 17, 2017)

I can’t believe Toyota is this dumb.


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## jocker12 (May 11, 2017)

goneubering said:


> I can't believe Toyota is this dumb.


This a media report and is not giving away any details about the deal. Toyota was negotiating with Uber right before the fatal accident happened, but everything went quiet after that. I am convinced they were negotiating for at least 4 to 8 times more money than these $500 million. When you put it this way, you see how SDC unit devalued Uber.

Also, when you see how Toyota wants to slow down because of the technology safety concerns, you see how $500 million mean nothing, at the rate Uber is losing with self driving cars ($200 million every 3 months as reported by The Information), and it only gonna take 7 to 8 months to completely burn that cash.

Also, consider that deal with Volvo (potentially selling Uber up to 24.000 cars from 2019 to 2021) already buried.

Toyota is doing very well - "Toyota's plans to spend a record 1.08 trillion yen, or about $10 billion, on R&D this year comes at a time when carmakers worldwide are sharpening their focus on electrification and automation to stay competitive amid rising demand for vehicles powered by cleaner technologies." - https://www.cnbc.com/2018/05/09/toyota-sees-lower-annual-operating-profit-on-higher-yen.html

Spending half a billion dollars on Uber from projected $10 billion (5%) on research and development only, is not that much. I am sure those money ($500 million) are secured with/by Uber assets.

Uber is desperate, and Dara is the firefighter fighting the Uber consuming flames. Go get the popcorn. This is a new episode of "San Francisco Corporate Greed", where the decoy is the self driving cars technology (and few other crazy innovations) and the investors are the mob committed to recover their foolish investments.


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## goneubering (Aug 17, 2017)

jocker12 said:


> This a media report and is not giving away any details about the deal. Toyota was negotiating with Uber right before the fatal accident happened, but everything went quiet after that. I am convinced they were negotiating for at least 4 to 8 times more money than these $500 million. When you put it this way, you see how SDC unit devalued Uber.
> 
> Also, when you see how Toyota wants to slow down because of the technology safety concerns, you see how $500 million mean nothing, at the rate Uber is losing with self driving cars ($200 million every 3 months as reported by The Information), and it only gonna take 7 to 8 months to completely burn that cash.
> 
> ...


So you're saying $500,000,000 is chump change for Toyota??!!


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## jocker12 (May 11, 2017)

goneubering said:


> So you're saying $500,000,000 is chump change for Toyota??!!


I am sorry if it sounds that way. I look at the context. They have $10 billion available and Uber was begging for financial help.

If I have $100 in my pocket and my kid asks for $5 to get a chocolate bar, I am looking at $95 left in my pocket.

$500 million is not change but is not a fortune either, if you put it in Toyota profit margin money.

My point was with this money Uber self driving cars unit only gets a slower death. That's all.

Miracles only exist in movies.


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## 1.5xorbust (Nov 22, 2017)

Uber can blow through $500,000,000 in a couple of months. They’re used to having investors throw billions at them. I’ve been driving Toyota’s for years so I do question Toyota’s common sense.


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## Kodyhead (May 26, 2015)

Imo Toyota is probably the best car manufacturer to team up with from ubers pov


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## iheartuber (Oct 31, 2015)

They could just take that $500 mil and give out 50,000 brand new corollas to uber drivers


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## goneubering (Aug 17, 2017)

jocker12 said:


> I am sorry if it sounds that way. I look at the context. They have $10 billion available and Uber was begging for financial help.
> 
> If I have $100 in my pocket and my kid asks for $5 to get a chocolate bar, I am looking at $95 left in my pocket.
> 
> ...


Don't apologize. I just thought Chump Change sounds funny!!


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## Kobayashi Maru (Jun 13, 2018)

Toyota's the worlds largest car manufacturer for a reason.
They ain't stupid.
$500ml is peanuts to Toyota

But, it's gives them a front row seat and ability to muscle-in anytime they choose



Kodyhead said:


> Imo Toyota is probably the best car manufacturer to team up with from ubers pov


Agreed. However Toyota had a very rocky partnership with Tesla which ended up being dissolved at which point CEO Akio Toyoda announced 
He felt no future in a dedicated EV electric vehicle only,
that the future was for Hybrids


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## iheartuber (Oct 31, 2015)

Kobayashi Maru said:


> Toyota's the worlds largest car manufacturer for a reason.
> They ain't stupid.
> $500ml is peanuts to Toyota
> 
> ...


Is Kobayashi Maru really the Tomato after he's taken his meds?


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## goneubering (Aug 17, 2017)

iheartuber said:


> Is Kobayashi Maru really the Tomato after he's taken his meds?


I think I'll take Creative Member Names for $800.


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## jocker12 (May 11, 2017)

1.5xorbust said:


> Uber can blow through $500,000,000 in a couple of months. They're used to having investors throw billions at them. I've been driving Toyota's for years so I do question Toyota's common sense.





goneubering said:


> Don't apologize. I just thought Chump Change sounds funny!!





iheartuber said:


> Is Kobayashi Maru really the Tomato after he's taken his meds?


Here is where the money is coming from -

*Toyota, SoftBank to team up in self-driving and other technology*
"Both Toyota and SoftBank have investments and partnerships with Uber Technologies [UBER.UL] "

SoftBank is putting more foreign money into Uber, via Toyota, so it is not Toyota money.


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