Toyota Motor Corporation and Uber Technologies have announced a deal to work together on developing self-driving cars to be deployed for ride-hailing services. The Japanese car company will invest $500 million (Rs 3,505 crore) in the cab aggregator firm for the purpose, Reuters reported on Tuesday.

The two companies announced on Tuesday that technology from both will be integrated into purpose-built Toyota vehicles, which will be used on Uber’s ride-sharing network. The agreement marks an “important milestone” in Toyota’s “transformation to a mobility company”, said Shigeki Tomoyama, the company’s executive vice president.

The partnership will be “critical in realising self-driving technology at scale”, Toyota said. The mass-produced autonomous vehicles produced as part of the collaboration will be owned and operated by third-party fleet operators.

The fleet will use Toyota’s Sienna Minivans with Uber’s autonomous driving system and the Toyota Guardian automated safety support system. The technology will be deployed in Uber’s network from 2021, according to Reuters.

The collaboration is subject to regulatory approvals.

In March, Uber had suspended its self-driving car operations in some cities after an autonomous Uber car killed a woman crossing the street in Phoenix city in United States in March.