Self-driving car start-up Aurora has agreed to buy Uber Technologies’ self-driving unit, Advanced Technologies Group (Uber ATG).

Financial details of the deal were not disclosed.

Collectively, Uber and ATG investors and employees will now hold a 40% stake in Aurora, with Uber itself having a 26% interest.

The move marks a symbolic shift for the ride-hailing app, which had ambitious plans for self-driving technology some years ago.

However, the firm came under fire when an Uber self-driving car prototype led to the death of a pedestrian in 2018.

The firm experienced more trouble with the ongoing Covid-19 pandemic, which hit its business hard and led to several job cuts.

Aurora co-founder and CEO Chris Urmson said: “By adding the people and technology of Uber’s Advanced Technologies Group to the incredible group we’ve already assembled at Aurora, we’re shifting the landscape of the automated vehicle space.

“With the addition of ATG, Aurora will have an incredibly strong team and technology, a clear path to several markets, and the resources to deliver. Simply put, Aurora will be the company best positioned to deliver the self-driving products necessary to make transportation and logistics safer, more accessible, and less expensive.”

Aurora hopes the deal will help the company to fast-track its mission of delivering its first self-driving vehicles ‘safely, quickly, and broadly’.

The company said that it will use ATG’s expertise in software, hardware and product design to further advance its Aurora Driver applications for heavy-duty trucks, as well as increase its efforts in developing light-vehicle products.

In addition, Aurora has entered into a strategic partnership with Uber to integrate its technology with that of the ride-hailing platform.

To further strengthen the strategic relationship between the two companies, Uber will also make an investment of $400m in Aurora and Uber CEO Dara Khosrowshahi will have a seat on the Aurora board.

Khosrowshahi said: “Few technologies hold as much promise to improve people’s lives with safe, accessible, and environmentally friendly transportation as self-driving vehicles.

“For the last five years, our phenomenal team at ATG has been at the forefront of this effort and, in joining forces with Aurora, they are now in pole position to deliver on that promise even faster.”

In another development, Iteris announced the acquisition of TrafficCast International, a Wisconsin-based company, for $16m in cash with a $1m earn-out over two years depending on the fulfilment of some revenue targets.

TrafficCast provides travel information technology, applications and content to media, mobile technology and automotive customers across North America.