Uber and Rivian announce a $1.25 billion deal to buy 50,000 automated taxis

Uber technologies It plans to invest up to $1.25 billion in the electric car maker Rivian Cars As part of a deal to deploy up to 50,000 robotaxis in several countries through 2031, the companies announced on Thursday.

The link includes forecasts for Uberor its fleet partners, to purchase 10,000 self-driving versions of the upcoming Rivian R2 electric vehicle, with an option to purchase up to 40,000 additional robotaxis starting in 2030, according to a statement from the companies.

Rivian shares rose nearly 10% during premarket trading on Thursday, while Uber stock was relatively flat after the announcement.

The deal is the latest in a resurgence in announcements about self-driving vehicles and robotaxis, as the companies try to capitalize on what investors have forecast as a multi-trillion-dollar market. Many companies, including Uber, have previously fallen short of their goals when it comes to robotaxis.

An initial $300 million investment from Uber to Rivian, which is preparing to begin consumer R2 sales this spring, is expected to happen after the deal is signed soon, subject to regulatory approval, according to the statement.

Other investment tranches will occur contingent on certain milestones being achieved at unspecified dates through 2031, the companies said. The R2 robot is expected to be available exclusively through Uber’s platform in 25 cities across the United States, Canada and Europe, the companies said. The first cities are scheduled to be San Francisco and Miami in 2028, they said.

“We are strong believers in the Rivian approach — designing the vehicle, computing platform, and software stack together, while maintaining end-to-end manufacturing control and expanded supply in the U.S.,” Uber CEO Dara Khosrowshahi said in the statement. “This vertical integration, coupled with data from their growing consumer vehicle base and their experience managing the complexities of commercial fleets, gives us the conviction to set these ambitious but achievable goals.”

The deal is Rivian’s latest capital investment following a $5.8 billion software deal with German automaker Volkswagen announced at the end of 2024. It also marks an increase in Uber’s plans for robotaxis following recent announcements with the electric car maker. clear, Amazon Zoox, Chrysler’s father Stellantis And the technology giant Nvidia.

Rivian CEO RJ Scaringe recently began talking about the company’s ambitions for robotaxis, including announcing the electric car maker’s third-quarter results in November and at its first-ever “Autonomy and AI Day” in December.

Scaringe said Rivian’s upcoming R2 and the technologies behind it will enable the company to pursue robotaxis, which are currently dominated by Alphabet-backed Waymo in the US.

Scarring and other executives said the emergence of new technologies, including artificial intelligence and more capable semiconductor chips, will allow companies to finally succeed in robotics.

“Rivian’s growing data flywheel alongside RAP1 [Rivian Autonomy Processor]“Our cutting-edge in-house inference platform and our multi-modal perception platform make us incredibly excited about the rapid progress in Rivian’s autonomy over the next two years,” Scaringe said in Thursday’s release.

— CNBC Laura Kolodny She contributed to this report.