Uber Seals a Deal Worth Up to $1.25 Billion Dollars With Rivian to Launch Self-Driving R2 Robotaxis

Uber made a significant foray into the autonomous transportation world today by announcing that they are working with Rivian to convert thousands of their upcoming R2 vehicles into completely driverless robotaxis. The purchase is a game changer for both businesses, putting the two on a multi-year collision course that will give Uber a substantial leg up toward a driverless fleet and provide Rivian a major commercial customer for a vehicle it’s been building for autonomy from day one.

Uber is investing up to $1.25 billion in Rivian over the next seven years, but they will not hand over cash until the regulatory go-ahead is given, with $300 million going directly to Rivian the instant the green light is given. There is a catch…Uber will only pay if Rivian can back up its claims about how reliable its self-driving technology is in real-world traffic. In exchange, Uber or its fleet partners will purchase 10,000 fully autonomous R2 vehicles outright, with an additional 40,000 coming online by 2030 if everything goes as planned.

The self-driving robotaxi’s first deliveries are planned in 2028, but commercial rides, including those booked through the Uber app, will not begin until trials in San Francisco and Miami are done. Deployment should be underway in at least 25 cities throughout the USA, Canada, and Europe by the end of 2031, or at least that’s the idea.

The R2 was created from start with complete autonomy in mind. It has 11 high-resolution cameras that can capture 65 megapixel images, 5 radar units, a lidar scanner, and two bespoke chips capable of 1,600 trillion operations per second. However, what truly distinguishes this system is its learning ability. Existing Rivian owners feed real-world driving data back into the system, effectively creating a data flywheel, a never-ending improvement loop that serves as the foundation for the R2’s level 4 autonomy, a world in which a safety driver is simply not an option.

RJ Scaringe, Rivian founder, CEO, and Chairman of the Board, is pumped about the cooperation. He believes it will help them accelerate the development of one of the safest and most convenient self-driving platforms available. Dara Khosrowshahi, Uber’s CEO, is singing from the same hymn sheet. He claims Rivian has all the ingredients, including a vehicle created from the ground up, the necessary computational technology and software, and the fact that manufacture and parts supply are all in the United States, which sealed the deal for him.
[Source]