JAKARTA - Aurora, a start-up company that develops hardware and software that allows vehicles to drive autonomously, will go public. This was done through a merger with SPAC (Special purpose acquisition companies), an acquisition company that specializes in hot investments.
The deal with Reinvent Technology Partners is expected to be completed this year. The merger is expected to generate US$2.5 billion (around Rp. 36 trillion).
“This is a natural next step for us. This will unlock the capital we need to bring Aurora drivers as a service at scale,” said Aurora co-founder and CEO Chris Urmson.
With partners such as Toyota, Uber and truck manufacturers Volvo and Paccar, Aurora targets a wide variety of vehicles, such as delivery services and mobility companies, for the technology they create. Their goal is to build technology that will allow vehicles to reach Level 4 autonomous driving stage. This means that human interaction is no longer required when the vehicle is on the road.
Aurora expects its technology to be integrated into Volvo and Paccar Class 8 trucks by the end of 2023. The trucks operate independently on highways and expressways. This truck will generate revenue per mile for Aurora.
The business model is interesting, but bringing the promise to reality and actually solving the complexities of level 4 autonomous driving is a huge challenge. Selling autonomous vehicles is much more challenging than many predicted a few years ago.
Some companies, such as Uber Technologies, have given up on developing in-house systems. Uber is selling its autonomous vehicle business to Aurora while other companies, such as Zoox, are selling to Amazon. Alphabet's Waymo remains at the forefront with the highest profile operating a fleet of public autonomous vehicles in Arizona.
Urmson has also been making this technology for nearly 15 years, including leading Google's self-driving car project. "We understand how difficult this problem is to solve," Urmson said. “We have spent the last four years building the foundation for this technology. Now is the time to transition and deliver."
Will investors embrace Aurora once it goes public? The SPAC deals for electric vehicle companies such as Nikola, Lordstown Motors and Canoo have led to highly volatile stocks and an investigation by the SEC into whether the companies misled investors.
Mark Pincus, co-founder and director of Reinvent Technology Partners, said he invested in Aurora because they are a "clear leader" in the industry.
"This is a no-brainer for us to be in the mix. It represents everything we are looking for in the autonomous vehicle market," said Pincus
Aurora estimates that the global truck market has enormous opportunities. This is what automakers like GM, Tesla and Volkswagen also continue to invest billions in developing autonomous vehicles.
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