Uber Technologies Inc (NYSE:UBER) announced plans to sell its air taxi unit Uber Elevate to Joby Aviation. Earlier this week, the ride-sharing company announced a sale of its self-driving business to Aurora Innovation.
Uber has agreed to invest a further $75 million in Joby as part of a broader transaction involving the acquisition of Uber Elevate by Joby and an expanded partnership between the two parent companies. This investment comes in addition to a previously undisclosed $50 million investment made as part of Joby's Series C financing round in January 2020.
Under the terms of this week's deal, Joby Aviation will acquire Uber Elevate, while the two parent companies have agreed to integrate their respective services into each other's apps, enabling seamless integration between ground and air travel for future customers.
Established in 2016, Uber Elevate has played an important role in laying the groundwork for the aerial ridesharing market by bringing together regulators, civic leaders, real estate developers and technology companies around a shared vision for the future of air travel. Their software tools enabling market selection, demand simulation and multi-modal operations are at the center of their work, and form the basis of this future-focused deal.
Said Uber CEO Dara Khosrowshahi , "Advanced air mobility has the potential to be exponentially positive for the environment and future generations. This deal allows us to deepen our partnership with Joby, the clear leader in this field, to accelerate the path to market for these technologies."
UBER shares hiked 71 cents, or 1.3%, to $53.72.
