The talks are still underway and may not result in an investment, said the people, who asked for anonymity because they were not authorized to speak publicly.
Uber will have the challenge of explaining and selling to investors a business that is more complex and less focused than Lyft's. The investment would value the unit at somewhere between $5bn and $10bn.
Uber, most recently valued at US$76 billion in the private market, is seeking a valuation as high as US$120 billion, although some analysts have pegged its value closer to US$100 billion based on selected financial figures it has disclosed.
But Uber is under scrutiny for its losses - its net loss was $842 million in the fourth quarter - and self-driving technologies are expensive. However, he indicated plans to continue developing self-driving cars in the future with hopes to lead the way autonomous cars. The late-stage discussions were reported earlier on Wednesday by the Wall Street Journal.
Uber has for years invested heavily in self-driving cars, which it has said will eventually become a primary mode of transportation, replacing its human drivers.
Waymo said this month that it would sell a key innovation to companies that don't compete with its autonomous cars.
Following the death of a pedestrian in Arizona a year ago by Uber's one of self-driving cars, the developing technology came under a greater inspection. As part of an agreement with employees, the company rewarded them with equity in Uber Freight as a stand-alone business late previous year.
Lyft, a smaller firm which has ride-hailing and bike-renting in the United States and several Canadian cities, is seeking a valuation of $US20 billion to $US25 billion, up from its $US15 billion valuation as a private company. Japan's SoftBank is now their largest investor. SoftBank has put $2.25 billion in General Motors Co's self-driving unit Cruise, which has additionally gotten assets from Honda Motor.
Lyft and Uber are not only competing for customers but, in the close timing of their respective IPOs, for investor dollars as well.
A Toyota spokesman said the automaker "constantly reviews and considers various options for investment" but does not have anything to announce.
Bernie Sanders' staff unionizes in presidential campaign first
If a majority of workers sign them, the union presents those cards to the employer so that the employer will recognize the union. The next step is for the campaign and the union to begin negotiations over a collective bargaining agreement, the union said.