Uber to invest $1.25 billion in Rivian robotaxis

In Short:
– Uber plans to invest up to $1.25 billion in Rivian for 50,000 robotaxis by 2031.
– The deal includes 10,000 autonomous R2 vehicles, with options for an additional 40,000 starting in 2030.

Uber Technologies plans to invest up to $1.25 billion in electric vehicle maker Rivian Automotive to deploy 50,000 robotaxis by 2031.The investment includes an initial purchase of 10,000 autonomous Rivian R2 electric vehicles, with options for up to 40,000 more starting in 2030.

Uber Rivian deal

Rivian shares surged nearly 10% in premarket trading before stabilising, while Uber’s stock declined slightly.

This partnership comes amid renewed focus on autonomous vehicles, as investors eye a potentially massive market.

Uber’s initial $300 million contribution is pending regulatory approval and equates to approximately 19.55 million shares of Rivian.

Future funding will depend on achieving unspecified milestones through 2031, alongside certain licensing fees linked to Rivian’s autonomous software.

The R2 robotaxis will be available exclusively on Uber’s ride-hailing platform across 25 cities including San Francisco and Miami by 2028.

Future of transport

Uber CEO Dara Khosrowshahi expressed confidence in Rivian’s integrated approach to vehicle and software development.

The deal follows Rivian’s $5.8 billion partnership with Volkswagen, signalling strong interest in the robotaxi sector.

Rivian CEO RJ Scaringe is optimistic about the company’s robotaxi plans, backed by new technologies and a growing consumer vehicle base.

Advancements in artificial intelligence and semiconductor chips are seen as vital to the success of robotaxis, according to Scaringe.

The combination of Rivian’s data capabilities and innovative processing platform is expected to enhance its autonomy in the coming years.