The self-driving ambitions of Uber would not only pioneer the company in the ride-hailing industry but also lessen its dependence on human drivers, which has caused financial and legal hurdles for the California-based firm.
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The two have agreed on a $300 million alliance in which Volvo, owned by China’s Geely, will provide SUVs for Uber to use in testing their autonomous driving models.
The base vehicles will be manufactured by Volvo Cars and then purchased from Volvo by Uber.
“Self-driving cars have the potential to save millions of lives and improve quality of life for people around the world”.
Volvo and Uber are taking on Ford to usher in the next decade with a fleet of self-driving vehicles.
Ride-hailing companies have been striking these sorts of partnerships at a rapid pace. “We are going commercial”, Uber co-founder and CEO Travis Kalanick told Bloomberg.
Bloomberg reports that Uber’s first self-driving fleet of cars will arrive in Pittsburgh this month (August 2016), consisting of specially modified Volvo XC90 sport-utility cars, featuring dozens of sensors using cameras, lasers, radar, and Global Positioning System receivers.
Over the long term, Uber and rivals such as Lyft could cut the cost of paying drivers if they can gradually incorporate self-driving cars into their fleets. It is a world leader in the development of active safety and autonomous drive technology and possesses an unrivaled safety credibility.
Global taxi aggregator Uber has announced the acquisition of Otto, a technology startup with expertise in self-driving trucks. In a statement, the company’s spokesperson said, “Starting later this month, Uber will allow customers in downtown Pittsburgh to summon self-driving cars from their phones, crossing an important milestone that no automotive or technology company has yet achieved”.
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The news was announced by both companies on their blogs but additional reports suggest that Otto’s current employees are set to make a significant windfall as they will collectively receive 20pc of any profits from Uber’s future self-driving truck business.
