This article first appeared on GuruFocus.
Uber Technologies (NYSE:UBER) will invest up to $1.25 billion in Rivian Automotive (NASDAQ:RIVN) through 2031, with an initial $300 million commitment, as part of a partnership to deploy autonomous robotaxis on its platform. Uber will buy up to 50,000 fully autonomous R2 robotaxis.
The first 10,000 R2 robotaxis are expected to launch in San Francisco and Miami in 2028, with an option to purchase up to 40,000 more beginning in 2030, scaling to 25 cities across the U.S., Canada, and Europe by the end of 2031.
The deal adds to Uber’s broader push into autonomous ride-hailing. The company has been expanding partnerships across the space, including a recent agreement with Amazon’s (NASDAQ:AMZN) Zoox robotaxi service starting in Las Vegas this summer and expected to expand to Los Angeles next year. Uber is also working with Alphabet’s (NASDAQ:GOOG) Waymo in U.S. markets such as Phoenix and Atlanta, as well as Baidu in parts of Asia and the Middle East.
Uber shares are up 1.06% intraday.
