Source: Fortune
Summary
Uber is making a significant push to deploy its own robotaxis, with a new deal with Rivian to purchase and deploy up to 20,000 autonomous vehicles. This move marks a reversal from Uber’s previous strategy of partnering with other companies to offer autonomous rides. The deal with Rivian includes an investment of $300 million and potentially another $950 million if certain development requirements are met. Uber plans to deploy the new fleet in San Francisco and Miami in 2028 and hopes to be in 25 cities by 2031.
Our Reading
The numbers tell one story.
Uber is taking on asset risk and operational risk with its new deal with Rivian, a departure from its previous asset-light strategy. The company is planning to own thousands of highly specialized vehicles, which could lead to depreciation and utilization risks. This move may impact Uber’s pre-existing partnerships, such as with Waymo. The deal also includes a significant investment in Rivian, which may be used to finance the company’s autonomy push.
Uber is betting that owning the robots will hurt less than it did the first time around.
Author: Evan Null
