Uber to get 24,000 Volvo self-driving cars
Deal could offer Uber a way to overcome the many setbacks at its autonomous driving unit
Uber plans to buy up to 24,000 self-driving cars from Volvo, marking the transition of the US firm from an app used to summon a taxi to the owner and operator of a fleet of cars.
The non-binding framework deal could offer San Francisco-based Uber a way to overcome setbacks at its autonomous driving division in Silicon Valley’s race to perfect self-driving systems.
Combining Volvo’s cars with Uber’s self-driving system builds on their nearly threeyear relationship and comes as Uber’s autonomous driving unit has been hit by a lawsuit over trade secrets and the departure of top talent.
Automakers, ride-hailing firms and tech start-ups have been forging loose alliances in an effort to advance selfdriving technology and claim a piece of what is expected to be a multi-billion-dollar business.
Geely-owned Volvo said in a statement on Monday it would provide Uber with its flagship XC90 SUVs equipped with autonomous technology as part of a non-exclusive deal from 2019 to 2021. A Volvo spokesman said it covered up to 24,000 cars.
The self-driving system that would be used in the Volvo cars — which have yet to be built — is under development by Uber’s Advanced Technologies Group.
Should Uber buy all 24,000 cars, it would be Volvo’s largest order by far and the biggest sale in the autonomous vehicle industry, giving Uber, which is losing more than $600 million a quarter, its first commercial fleet of cars. A new Volvo XC90 typically retails from a starting price of around $50,000 (Dh183,650).
Uber has been testing prototype Volvo cars for more than a year, with safety drivers in the front seat to intervene if the self-driving system fails, in Tempe, Arizona and Pittsburgh.
“Our goal was from day one to make investments into a vehicle that could be manufactured at scale,” Jeff Miller, Uber’s head of automotive alliances, said. The cars, in theory, would be available through the Uber app to pick up passengers without a driver.
“It only becomes a commercial business when you can remove that vehicle operator from the equation,” Miller said.
No financial details were disclosed for the purchase, which would be a massive new investment for Uber.