Similar to the deal between Fiat Chrysler Automobiles [NYSE:FCAU] and Google, Volvo will supply Uber with cars fitted with autonomous driving systems for development and testing.
Advertisement
Now, it plans to bring the new Volvos – based on Volvo’s XC90 SUV – to Pittsburgh’s roads imminently, meaning anyone ordering a auto could get the new vehicle marking a huge breakthrough in its practical application.
Uber has placed a $300 million bet with Volvo that it can eventually replace its tens of thousands of drivers with self-driving vehicles. The two companies are investing a combined $300 million, roughly split between the two, in a deal that will seek to achieve production of a road-ready autonomous auto based on the XC90 SUV platform. Volvo will use the same base vehicle for the next stage of its own autonomous auto strategy, which will involve fully autonomous driving.
The XC90 is built on the brand’s Scalable Product Architecture (SPA), a key factor in why Uber wanted it.
The deal a clear indication of Uber’s determination to ditch drivers in in its minicabs, and is the latest move by traditional vehicle manufacturers looking to team up with Silicon Valley firms long seen as disruptive threats to their industry.
On a recent weekday test drive, the safety drivers were still an essential part of the experience, as Uber’s autonomous vehicle briefly turned un-autonomous, while crossing the Allegheny River.
Advertisement
Uber’s boss, Travis Kalanick, was similarly upbeat: “Over one million people die in auto accidents every year”. These are tragedies that self-driving technology can help solve, but we can’t do this alone. “By combining the capabilities of Uber and Volvo we will get to the future faster, together”.
