Uber will invest up to $1.25 billion in Rivian Automotive as part of a major partnership to deploy thousands of autonomous vehicles, marking one of its biggest bets yet on robotaxis.
Uber has committed an initial $300 million investment, subject to regulatory approval, with total funding potentially rising to $1.25 billion by 2031 if key autonomous milestones are achieved.
The investment will be spread over several years and tied to performance targets related to self-driving technology.
Robotaxi fleet plans
Under the agreement:
-Uber or its fleet partners will purchase 10,000 autonomous Rivian R2 vehicles
-There is an option to buy up to 40,000 additional robotaxis from 2030
-Vehicles will be exclusively available on the Uber app
The rollout will begin in San Francisco and Miami in 2028, with expansion planned to 25 cities across the US, Canada, and Europe by 2031.
Rivian’s role and vehicle lineup
Rivian, based in Irvine, California, currently produces the R1T pickup and R1S SUV, along with delivery vans for Amazon and others.
The company is set to launch its smaller R2 model, which will form the backbone of the robotaxi fleet. Rivian is also investing in a $5 billion manufacturing facility in Georgia to scale production.
Uber’s strategy:
-Connecting robotaxis to its global rider network
-Supporting charging infrastructure
-Managing fleet operations through partners
Competition heats up in robotaxi market
The deal comes amid intensifying competition from rivals such as Tesla and Lucid Motors.
Tesla already operates a small robotaxi fleet in Austin and plans to launch its Cybercab, while continuing to expand autonomous capabilities.
Long-term vision
If milestones are met, the partnership could see thousands of fully autonomous robotaxis deployed globally by 2031.
Rivian is also advancing its own self-driving ambitions, aiming to bring features such as auto-parking, hands-free driving, and autonomous errands to consumer vehicles, while exploring software licensing opportunities.
Market reaction
Following the announcement:
-Rivian shares rose 10% in premarket trading
-Uber stock remained largely unchanged
-Tesla shares dipped around 1%
(With AP, Bloomberg inputs)
