Uber plans to invest as much as $1.25 billion in Rivian in connection with a robotaxi agreement
Uber will invest up to $1.25 billion in electric vehicle maker Rivian (RIVN.O) as part of a deal in which the ride-hailing firm will begin deploying 10,000 fully autonomous R2 SUVs as robotaxis starting in 2028, the companies announced on Thursday.
Rivian’s shares increased by approximately 9% in premarket trading.
Uber, based in San Francisco, will make an initial investment of $300 million and will finance the remaining amount through 2031, contingent upon Rivian achieving specific autonomous milestones, according to the companies.
Interest in driverless taxis has increased significantly in recent months following years of unmet expectations, as artificial intelligence and technology collaborations present the potential to address intricate traffic situations more efficiently and reduce expenses.
Rivian, recognized for its premium R1S SUVs and R1T pickup trucks, has yet to introduce a robotaxi; however, it did reveal its inaugural custom computer chip for self-driving technology in December. The company is preparing to launch its smaller, more budget-friendly R2 SUVs this quarter.
At the same time, Alphabet’s Waymo operates approximately 2,500 robotaxis across various U.S. cities and has sped up its rollouts. In contrast, Tesla has introduced a limited robotaxi service in Austin, Texas, with CEO Elon Musk pledging swift growth this year.
R2 robotaxis will be available solely on Uber’s platform, initially launching in San Francisco and Miami, as stated by the companies, who also mentioned that Uber has the option to purchase up to 40,000 additional units starting in 2030.
“If all milestones are met, the companies will have deployed thousands of unsupervised Rivian R2 robotaxis across 25 cities in the U.S., Canada, and Europe by the end of 2031,” they stated.
Uber is establishing itself as a marketplace for various robotaxi operators and has formed partnerships throughout the autonomous vehicle sector, including collaborations with Waymo, Baidu, and Lucid.
It is collaborating with Nvidia on autonomous driving, utilizing the chip designer’s AI and simulation platforms to aid in the development and scaling of robotaxi systems.
