Uber Buys Otto Self-Driving Truck Tech Firm

Uber Technologies Inc. says it has acquired Otto, a San Francisco-based startup that specializes in automated-driving technology for heavy-duty trucks. The all-stock deal is valued at $680 million.

Otto was launched early this year by several former senior managers of Google Inc.’s autonomous vehicle team. The company has developed a retrofit kit that provides automated braking, steering and throttle control functions for heavy-duty trucks. The 90-person company, which includes veterans from Apple, Cruise, Tesla and other Silicon Valley firms, began testing the technology this spring on three Volvo trucks.

Otto co-founder Anthony Levandowski, who developed a self-driving motorcycle in 2004 and later was part of the Google team, will head the autonomous driving development for both Uber and Otto. He will report to Uber CEO Travis Kalanick.

Some of Otto’s technology is expected to be applied to future Uber autonomous ride-hailing and delivery vehicles. Otto also aims to license the technology to global truckmakers.  

Uber, which yesterday announced a partnership with Volvo Car Corp. to develop a platform for self-driving vehicles, plans to open two new research and development centers in California. One will be located within Otto’s facility in San Francisco and the second will be in Palo Alto. 

Watch a video of Otto's technology here.