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Divestitures
12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Divestitures
Note 18 – Divestitures
During the years ended December 31, 2021, 2022 and 2023, we completed the following divestitures:
In 2021, divestitures consisted of the sale of our ATG Business, a subsidiary focused on the development and commercialization of autonomous vehicle technology, to Aurora.
In 2023, we divested Careem’s non-ridesharing business.
The gains associated with these divestitures were included in other income (expense), net in the consolidated statements of operations.
Divestiture of Careem Technologies
In December 2023, we completed the previously announced agreement with e& whereby e& contributed $400 million to Careem Technologies in exchange for a majority equity interest. Refer to Note 4 - Equity Method Investments for further information.
The following table presents the preliminary gain on sale of the interest in Careem Technologies.
Year Ended December 31, 2023
Fair value of common shares received$300 
Cash consideration received
40 
Net consideration received for sale of interest in Careem Technologies
340 
Carrying value of net assets transferred(136)
Gain on the sale of interest in Careem Technologies
$204 
Divestiture of ATG Business to Aurora
On January 19, 2021, we completed the sale of our ATG Business, a subsidiary focused on the development and commercialization of autonomous vehicle technology, to Aurora. As a result, our controlling interest and the non-controlling interests in the ATG Business were settled, and ownership of the ATG Business transferred to Aurora.
As consideration for the sale, Aurora issued Series U-1 preferred shares to the third-party investors of the ATG Business to settle their ATG Series A Stated Liquidation Preference of $1.1 billion, which had previously been recorded as redeemable and non-redeemable non-controlling interests on our consolidated balance sheet prior to this transaction. We received the residual consideration from the sale as the only common unit holder of the ATG Business in the form of Aurora common shares valued at $1.3 billion, representing 22% of fully-diluted (25% undiluted) ownership interest of Aurora. Concurrently, we invested $400 million in Aurora in exchange for Aurora Series U-2 convertible preferred shares, representing 4% of fully-diluted (5% undiluted) ownership interest of Aurora. Refer to Note 3 – Investments and Fair Value Measurement for additional information.
We entered into a commercial agreement with Aurora pursuant to which the parties will collaborate with best efforts to launch and commercialize self-driving vehicles on our ridesharing network. We also allowed unvested RSUs for Uber stock held by employees of the ATG Business that transferred to Aurora to continue to vest over the next 12 months contingent upon the employee remaining at Aurora. As a result, we recognized liabilities of $315 million as consideration for these future obligations to Aurora.
The sale of the ATG Business did not represent a strategic shift that would have had a major effect on our operations and financial results, and therefore does not qualify for reporting as a discontinued operation. The resulting gain on disposal was recorded in other income (expense), net in the consolidated statements of operations.
The following table presents the gain on sale of the ATG Business (in millions):
Year Ended December 31, 2021
Fair value of common shares received$1,277 
Derecognition of ATG Business' non-controlling interests1,057 
Liability recognized for future obligations(315)
Net consideration received for sale of the ATG Business2,019 
Carrying value of net assets transferred(375)
Gain on the sale of the ATG Business$1,644