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Uber announces $1 billion investment for self-driving cars; Lyft faces investor lawsuits

April 19, 2019

Human cloud, ride-sharing firm Uber Technologies Inc. today announced a $1 billion investment in its “Advanced Technologies Group” which develops self-driving technology for cars. In separate human cloud news this week, Bloomberg reported Lyft (NASD: LYFT) faces two class-action lawsuits claiming its initial public offering was overhyped.

Uber investment. In the Uber announcement, the investment comes from Toyota Motor Corp. Denso Corporate and the Softbank Vision Fund with the aim of accelerating the development of automated ridesharing services.

The deal calls for Toyota and Denso, an auto components manufacturer, to invest $667 million. Softbank Vision Fund will invest $333 million. The deal will value Uber’s Advanced Technologies Group at $7.35 billion on a post-money basis.

Toyota will also contribute up to an additional $300 million in the next three years.

Plans call for the deal to close in the third quarter.

“The development of automated driving technology will transform transportation as we know it, making our streets safer and our cities more livable,” Uber CEO Dara Khosrowshahi said.

Lyft lawsuits: Separately, Bloomberg reported human cloud, ride-sharing firm Lyft, its officers, directors and underwriters face two class action lawsuits filed in San Francisco.

Lyft’s pre-open share price was $72, but yesterday its shares closed at $58.36.

Lyft has been included in other coverage this week. Business Insider reported one analyst believes Lyft will be profitable eventually, but it could take seven years.

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