Uber to buy 24,000 driverless cars from Volvo

Uber's Volvo XC90 self driving car is shown during a demonstration of self-driving automotive technology in Pittsburgh, Pennsylvania, U.S. September 13, 2016

Uber has introduced plans to purchase as much as 24,000 self-driving vehicles from Volvo because it seems to be to broaden on its ride-booking app.

The vehicles can be obtainable via the Uber app to select up passengers with no driver, giving the enterprise its first business fleet of vehicles.

The non-binding framework deal builds on a relationship of practically three years between San Francisco-based Uber and the car-maker.

Uber’s Superior Applied sciences Group is growing the self-driving system for use within the Volvo vehicles.

Volvo confirmed it might present as much as 24,000 of its XC90 SUVs geared up with driverless expertise as a part of a non-exclusive deal from 2019 to 2021.

Volvo chief govt Hakan Samuelsson stated: “We get help growing this automobile.

“It is also an enormous business deal.

“The automotive business is being disrupted by expertise, and Volvo Automobiles chooses to be an energetic a part of that disruption

“Our intention is to be the provider of selection for AD (autonomous driving) ride-sharing service suppliers globally.”

He added that the take care of Uber was a “main instance of that strategic path”.

There have been no monetary particulars disclosed relating to the funding however the XC90 SUV sometimes has a beginning worth of $50,000 (£37,755) every.

Uber is dealing with quite a few issues in its driverless vehicles division, corresponding to workers departures and a lawsuit over commerce secrets and techniques.

Jeff Miller, Uber’s head of automotive alliances, stated: “Our objective was from day one to make investments right into a car that may very well be manufactured at scale.

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“It solely turns into a business enterprise when you’ll be able to take away that car operator from the equation.”

Final 12 months, Volvo introduced a $300m (£226m) take care of Uber to design and finance vehicles with self-driving programs.

Earlier this 12 months, Uber’s rival Lyft revealed partnerships with Alphabet’s Waymo, Ford and startups Nutonomy and Drive.ai to carry self-driving vehicles into its fleet.

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