Toyota Motor Corp. will invest $500 million in Uber to jointly work on developing self-driving cars, the companies said Monday, in a bid by both firms to catch up with rivals in the hotly competitive autonomous driving business.
The investment values Uber at $72 billion, matching the valuation Uber received in a deal with Alphabet Inc.'s self-driving unit Waymo this year.
Toyota, one of the world's largest carmakers, and Uber Technologies Inc., the leading ride-hailing service, are widely seen as lagging the competition in developing self-driving cars. The partnership deepens an existing relationship and reflects CEO Dara Khosrowshahi's strategy of Uber developing autonomous vehicles through partnerships, rather than on its own.