Uber to Invest $1.3B in Rivian for Robotaxi Partnership
Synopsis
Uber will invest as much as $1.25 billion into the electric carmaker Rivian in connection with a deal to deploy up to 50,000 self-driving R2 robotaxis exclusively on the Uber platform by the end of 2031. The initial $300 million is deposited immediately following regulatory approval. Ten thousand Rivian R2 vehicles will begin all in one robotaxi fleets launching first in San Francisco and Miami, with expansion plans to up to 25 cities across the US, Canada, and Europe expected by 2028 Rivian has not yet started on R2 production, and has never put out a robotaxi. Uber also has more than two dozen other autonomous vehicle partnerships in the industry.
Uber will deploy about 50,000 autonomous Rivian R2 taxis, through a partnership with the automaker for up to $1.5 billion. And it will use them effectively within its platform across San Francisco and Miami in 2028.
Key Highlights
- Uber will invest about $1.25 in electric car maker Rivian.
- The first $300 million goes in right when the deal closes.
- In 2028, Uber will be the exclusive launch partner for 10,000 Rivian R2 robotaxis in San Francisco and Miami.
- By 2031, as many as 50,000 self-driving cars from Rivian could appear on Uber’s platform in 25 cities.
Uber to Give Rivian Up to $1.25 Billion Under New Robotaxi Deal
On Thursday, Uber and Rivian announced a significant partnership. As part of a plan to field tens of thousands of self-driving taxis on the road in the next five years, Uber will invest about $1.25 billion in the American electric car company.
Uber will invest an initial $300 million in Rivian once the deal is cleared by regulators. The rest of the funds will come in four additional tranches through 2031, contingent on Rivian hitting certain self-driving benchmarks. The robotaxis will only be available on Uber’s app.
How the Rollout Will Work
Phase 1 will begin in 2028, where we will see 10,000 fully autonomous Rivian R2 SUVs deployed in San Francisco and Miami. If that goes well, then the plan is to expand to 25 cities in the US, Canada and Europe by the year 2031. Uber can also purchase an additional up to 40,000 Rivian R2 vehicles in the subsequent years from a start time of 2030, which brings the total possible fleet to 50,000 cars.
Uber will also pay Rivian to use its self-driving software. Based on that, it’s going to spend $100 million building fast-charging stations at robotaxi depots in San Francisco, Los Angeles and Dallas where the cars will run through car washes, preventive maintenance and inspections.
Why Rivian Has So Much to Prove
This deal is all good news for Rivian, but the company faces real challenges. The R2 is not yet being manufactured, Rivian expects the first units to roll down the production line by June this year. It has also never rolled out a self-driving system intended for robotaxis. And the Georgia facility where the company’s R2 robotaxis will be made is still being built.
RJ Scaringe, CEO of Rivian, has been big on using his voice when it comes to autonomous driving. He said at SXSW last week that the company was currently spending more money on hands-off, eyes-off driving technology than in any other area. Rivian just released its first custom self-driving chip in December.
Uber Is Making Big Bets Throughout the Industry
This is not Uber’s only robotaxi deal, either. Uber also pumped $300 million into Lucid for 20,000 robotaxis outfitted with Nuro’s self-driving software, and offered V750 million to AV company Waabi for at least 25,000 more. It partners with Waymo, Baidu, Zoox, and over 25 other companies in the autonomous vehicle space.
Uber has also previously attempted to develop its own self-driving technology, and ultimately failed. Now its strategy is apparent, to become the platform on which every robotaxi company operates, rather than compete with them directly. Khosrowshahi, Uber’s chief executive officer, said he was a believer in Rivian’s approach of designing the car and the computing hardware and software all under one roof, something he called a key reason to believe in the deal.
FAQs
- Where will Rivian robotaxis be introduced?
25 cities across the US, Canada and Europe by 2031.
- Has Rivian ever built a robotaxi?
No, the R2 has not been built yet, and the factory to do so is still under construction.
- Is this the only robotaxi partnership Uber has?
No, Uber has more than 25 autonomous vehicle partners, including Waymo, Lucid, Zoox and Baidu.
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At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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