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UBER to Sell Flying Taxi Business, Elevate, to Joby Aviation

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Uber Technologies (UBER - Free Report) will be selling off its flying taxi unit, Uber Elevate, to Joby Aviation, a California-based startup developing electric aircraft.

As part of the acquisition deal, Uber will invest $75 million in Joby. This investment is in addition to a previously undisclosed investment of $50 million in the startup in January 2020. Additionally, the two companies will integrate their services into each other's apps.
Financial terms of the agreement were undisclosed. Subject to customary closing conditions, the transaction is expected to close in the first quarter of 2021.

Uber Technologies, Inc. Price

Uber Technologies, Inc. Price

Uber Technologies, Inc. price | Uber Technologies, Inc. Quote

Uber regarded the deal as an expanded partnership between the two companies. This marks the company’s second such deal this week, to exit side businesses and focus on its core ride-hailing and delivery platforms.

Earlier, Uber entered into a definitive agreement with Aurora Innovation to sell its self-driving unit Advanced Technologies Group or ATG. As part of the deal, Uber will invest $400 million in Aurora, a self-driving technology startup, to get a 26% stake in the company.

Zacks Rank & Key Picks

Uber currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Internet - Services industry are Baidu (BIDU - Free Report) , The Trade Desk (TTD - Free Report) and Marchex (MCHX - Free Report) . While Baidu and The Trade Desk sport a Zacks Rank #1 (Strong Buy), Marchex carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Baidu, The Trade Desk and Marchex have rallied more than 24%, 100% and 44% in the past six months, respectively.

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