Dara Khosrowshahi has formally resigned from his role as annonboard member of Aurora Innovation, a autonomous vehicle technology company, with immediate effect. The CEO of Uber and co-founder of the ride-hailing giant has cited a desire to focus on ongoing responsibilities as CEO of Uber while reducing external board commitments. According to regulatory filings, Khosrowshahi’s resignation is effective as of Tuesday.
The decision by Khosrowshahi to leave the board of Aurora Innovation was not due to any disagreement with the company, according to Aurora’s statement. The article highlights that both companies have a long-standing relationship, with Uber having taken on a significant role in Aurora’s growth over the years.
Background and Deal Details
In 2020, Uber completed the sale of its self-driving unit, Uber ATG (Aurora’s Autonomous Technology Group), to Aurora Innovation. This deal involved Uber handing over its equity stake in ATG while investing $400 million into Aurora. In return, Uber received a 26% stake in the combined entity. The collaboration between Uber and Aurora marked a pivotal moment in both companies’ histories.
Khosrowshahi joined Aurora’s board as part of this transaction. He had previously served on the board of Aurora when he was CEO of Uber ATG, a role that included his time at Waymo, Google’s autonomous vehicle project. This background underscores his deep connection to Aurora and his strategic understanding of its potential.
Uber’s Relationship with Aurora
While Uber’s relationship with Aurora is not exclusive, the two companies have a history of collaboration beyond the initial sale. Beyond ATG, Uber has engaged with Aurora in various projects, including the development of self-driving technology for third-party partners.
One notable example is Uber Freight, a platform that connects shippers and carriers to facilitate last-mile deliveries. In June 2023, Uber announced a multi-year partnership with Aurora to deploy trucks powered by Aurora’s advanced autonomous driving technology onto Uber Freight’s network. This collaboration underscores the potential for shared growth between the two companies.
Additionally, Uber has continued its relationship with Waabi, a self-driving truck startup founded by Raquel Urtasun, who previously served as chief scientist and head of R&D at Uber ATG. While specific details about this partnership have not been publicly disclosed, it is clear that Uber maintains strategic connections with Aurora outside the initial sale.
Changes in Board Structure
Khosrowshahi’s resignation comes shortly after Nolan Shenai, Aurora’s general counsel, announced his intention to step down from his role as of January 6, 2025. This staggered approach highlights the complexities of managing relationships between competing interests within a company like Uber.
In response to Khosrowshahi’s resignation and Shenai’s departure, Aurora Innovation has made strategic additions to its board to ensure continuity and stability in its operations. Shailen Bhati, currently the CEO of Waymo and an executive at Cruise Automation, has been named as the new nonexecutive independent director on Aurora’s board.
This move reflects Aurora’s commitment to maintaining a strong leadership team capable of navigating the challenges of autonomous vehicle technology development. The addition of Bhati brings significant industry experience and strategic insight, which is expected to bolster Aurora’s position in the competitive marketplace.
Regulatory and Operational Developments
Aurora Innovation has been actively managing its board transitions while maintaining operational momentum. With Khosrowshahi stepping down, the company will need to address potential challenges related to resource allocation and decision-making processes during his absence.
The resignation also raises questions about the extent of Uber’s involvement in Aurora’s operations. While there are no immediate signs of conflicts of interest, the two companies’ shared history suggests that careful planning is required to ensure seamless transitions between leaders.
Summary
Dara Khosrowshahi’s decision to resign from his role on Aurora Innovation’s board marks a significant milestone in both his career and the company’s history. While the exact reasons for his departure remain unclear, it is evident that he will continue to play a pivotal role at Uber as CEO of its autonomous vehicle initiatives.
Aurora Innovation has responded to Khosrowshahi’s resignation with strategic additions to its leadership team, signaling a commitment to maintaining operational continuity and growth in an evolving industry. The relationship between Uber and Aurora remains one of the most dynamic in the autonomous vehicle space, with potential for further collaboration yet to be determined.