Friday 19 April 2019 3:20 pm

Uber's self-driving unit raises $1bn ahead of IPO

Uber’s self-driving unit has raised $1bn from a consortium of investors including Softbank Group ahead of the ride hailing app’s initial public offering.

Uber said that the investment values its Advanced Technologies Group, which is working to develop autonomous vehicle technology, at $7.25bn.

Read more: Uber IPO: Six things you need to know

Softbank will invest $333m from its $100bn Vision Fund, and Toyota and Denso will invest a combined $667m.

Toyota will also invest up to an additional $300m over the next three years to help fund the cost of building commercial self driving cars, Uber said.

Uber chief executive Dara Khosrowshahi said the funding will “help maintain Uber’s position at the forefront” of the transport industry.

Read more: Uber files to go public as losses mount

Uber warned, in its filing for an IPO this month, that the development of self-driving technology is “expensive and time-consuming and may not be successful”.

Shifting some of the costs of developing autonomous cars to outside investors could appease concerns about Uber's spending on the program, which has totalled more than $1.07bn since 2016, ahead of its float on the New York Stock Exchange.