📈 Business & Markets

Uber has a Lucid dream to dominate the robotaxi market

Tuesday, Jul 22

Image: Uber/Lucid/Nuro

Rejoice, small-talk haters: silence could become the preferred option in Uber rides if the ride-hailing giant has its way. Uber late last week announced plans to launch its own fleet of autonomous taxis through a new partnership with EV-maker Lucid and autonomous vehicle (AV) startup Nuro.

  • The ride-hailing company is investing $300 million in Lucid, which will provide Uber with 20,000+ electric Gravity SUVs over the next six years to use as robotaxis.
  • Nuro—backed by Google and SoftBank’s Vision Fund—will provide the self-driving software for the cars, which will be owned and operated by Uber or its third-party fleet partners.
  • Uber, Lucid, and Nuro plan to bring their new robotaxis to at least one major US city by next year.

It’s part of Uber’s AV master plan. The ride-hailing giant has spent the past two years locking in partnerships with 18 global autonomous vehicle tech companies across the full spectrum of self-driving systems, including ride-hailing, delivery, and trucking. It’s inked its highest-profile deal in the US with self-driving industry leader Waymo, which allows Uber app users to order Waymo rides in Austin and Atlanta.

Robots, start your engines

More broadly, autonomous taxis are starting to become more common on US streets. The aforementioned Waymo is currently testing its driverless ride-share operations across 10 new cities, in addition to the five metro areas it currently operates in, while Tesla rolled out its first-ever robotaxi service last month in Austin, TX.

  • Both companies’ vehicles are equipped with Level 4 self-driving systems, meaning they can drive passengers without a human behind the wheel under certain conditions, and within a specific geofenced area.

But…The road to mass adoption still has several obstacles left to clear. Current self-driving tech doesn’t perform well in colder weather conditions, struggles to handle more complex traffic scenarios, and faces a general lack of public trust when it comes to safety. Plus, as San Francisco residents will tell you, they can honk quite a lot.

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