Toyota and Uber jointly develop autonomous driving. Can they surpass their competitors by investing $500 million?

According to foreign media reports, people familiar with the matter revealed that Toyota Motor will invest US$500 million in Uber and the two parties will jointly develop self-driving vehicles.

People familiar with the matter pointed out that Uber will integrate Toyota's Guardian system, which can provide some safety features for vehicles, but cannot yet make the vehicle fully autonomous. In addition, when the technology matures, Uber will use Toyota vehicles equipped with this technology in its online car-hailing network.

Toyota and Uber are widely seen as lagging behind rivals in developing self-driving vehicles, and the partnership is seen as a deepening of their existing relationship and a reflection of Uber Chief Executive Dara Khosrowshahi's strategy to collaborate on self-driving technology.

In March this year, an Uber self-driving test vehicle was involved in a car accident in Arizona, USA, killing a pedestrian. Subsequently, the company suspended its self-driving tests in many places. This cooperation may bring new vitality to Uber's self-driving business.

Uber has a three-pronged autonomous driving strategy. First, Uber buys Volvo vehicles, modifies them with its own autonomous driving technology, and operates them on its own. Second, Daimler operates its own autonomous vehicles on Uber's network. The cooperation model with Toyota will be the third approach.

Recent reports have stated that four Toyota-affiliated companies will form a joint venture to integrate autonomous driving technology in order to better compete with auto parts giants such as Bosch.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.