Instead, Volvo will work on its own autonomous tech apart from Uber, though they will share the underlying vehicle platforms.
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Volvo confirms that the agreement will see a new base vehicle developed that uses Volvo’s SPA modular platform that now underpins the new Volvo XC90 amongst other Volvo models.
It will be the first time members of the public will be able to use self-driving vehicles, although a driver trained to handle the autonomous cars will be behind the wheel to step in if needed.
Volvo said it has forged a partnership with Uber worth $300 million that will lead to the latter buying a fleet of 100 XC90 plug-in hybrid SUVs capable of driving on its own.
Volvo and Uber are taking on Ford to usher in the next decade with a fleet of self-driving vehicles.
CEO Travis Kalanick says cutting the driver out of the equation could potentially make the service much cheaper for riders – possibly even cheaper than a private vehicle.
“By combining Uber’s self-driving technology with Volvo’s state-of-the art vehicles and safety technology, we’ll get to the future faster than going it alone”, he added.
Both companies are expecting this alliance to be the beginning of an extended industrial partnership. Both companies will design autonomous vehicles on their own. It is a world leader in the development of active safety and autonomous drive technology, and possesses an unrivalled safety credibility.
How did Uber manage to build self-driving cars ahead of Tesla and Google?
The CEO of Volvo Cars, Hakan Samuelsson, said the venture placed Volvo “at the heart of the current technological revolution in the automotive industry”.
Significantly, Uber, unlike Google, Tesla and Ford, will not manufacture its own cars, said Kalanick, and instead develop driverless technology with auto manufacturers, starting with starting with Volvo.
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Uber also announced that it has acquired Otto, an autonomous technology startup focusing on autonomous trucks.
