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Toyota invests in Uber, heats up the ride-hailing wars

Ahh, the battle in the car industry is heating up, quick everyone, grab your popcorn!

After both Lyft and Gett found their investors in the form of General Motors and Volkswagen, respectively, it was Uber's turn to get funded, and the car making company with the pleasure is none other than – Toyota.

The news broke out on Bloomberg's Technology site, although it didn't say how big the investment was. Both Uber and Toyota are keeping quiet about the matter, but it seems as the investment is not astronomical.

“The Japanese automaker has no interest in taking a big position in the ride-sharing company or eventually controlling it,” an anonymous person familiar with the matter said, according to Bloomberg.

Reuters, on the other hand, says the alliance will go far beyond car sales.

The companies said they would be "sharing knowledge and accelerating their respective research efforts,” according to Reuters.

“Both Toyota and Uber are researching self-driving cars and other technology that connects travellers to different modes of transportation,” the news agency said.

Gett, Uber’s rival based in Tel Aviv, said Volkswagen invested #300 million, while General Motors invested $500 into Lyft.

The rush to invest and be a part of the industry disrupting technology is on, as carmakers don’t want to be left out, everyone agrees.

Tech companies, such as Google and Apple, are making significant advances in the auto industry, and coupled with heavy investments, they’re looking to elbow their way into the automotive world. Traditional car makers do not want to be pushed aside.

Image Credit: Daniel / Flickr

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.