Volvo owned by China’s Geely has signed an agreement with Uber to sell 24, 00 driver-less starting from 2019.
This will make uber move from its current model of of ride-sharing using freelance drivers to owning a fleet of autonomous cars. Although the financial details of the agreement has not been announced, experts say it could be more than $1 Billion.
Uber is currently building its own software system and after getting the cars it will install those software’s to the cars to drive pilotless.
Both Volvo and Uber engineers worked hard for more than 3 years to develop the XC90 premium SUVs that are to be supplied to Uber. Uber is all set to get 24,00 cars from 2019 to 2021.
Uber – Volvo deals is the biggest deal for Volvo by far and the biggest sale in the autonomous vehicle industry to date. “This opens a whole new segment for us. We are open to deliver to more taxi companies,”– said Hakan Samuelsson (Ceo of Volvo Cars)
Jeff Miller, Uber’s head of automotive alliances said we will hit the commercial market by removing freelance drivers from our current system.
“It only becomes a commercial business when you can remove that vehicle operator from the equation.”– he said.
“Our goal was from day one to make investments into a vehicle that could be manufactured at scale”– he added.
It is to be noted that Uber has halted its pilot programme for self-driving cars, pending an investigation into a crash of an Uber autonomous vehicle in Arizona in March.
Advocates of Uber argue , self-driving cars will cut down on deadly traffic accidents by eliminating human error.