Uber to buy 10,000 Rivian robotaxis in new partnership

Uber is launching a major partnership with electric vehicle manufacturer Rivian, committing an initial $300 million investment to secure 10,000 autonomous R2 robotaxis. The fleet is planned for a rollout in San Francisco and Miami in 2028. Under the agreement, Uber also holds an option to purchase up to 40,000 additional robotaxis starting in 2030, with the potential total value of the deal reaching as high as $1.25 billion. This deal represents a significant strategic pivot for Rivian. The company has explicitly stated that it no longer expects to meet its 2027 profitability goal because of the capital it is spending on its autonomy efforts.

The partnership arrives as the broader autonomous vehicle sector accelerates. At GTC, Nvidia’s developer conference, Nvidia CEO Jensen Huang declared, “The ChatGPT moment of self-driving cars has arrived. We now know we could successfully autonomously drive cars” as the company expanded its autonomous vehicle platform partnerships. Other players in the sector are navigating varying regulatory and operational hurdles. Autonomous freight operator Kodiak has expanded its commercial autonomous freight operations to the Dallas-El Paso corridor. Meanwhile, the National Highway Traffic Safety Administration (the US safety regulator) upgraded its investigation into Tesla’s software. The probe has now been escalated to an “engineering analysis,” its highest level of scrutiny and a required step before the agency tells a company to issue a recall.

Additionally, a person directly familiar with both companies suggested the deal was long-planned, questioning if Rivian CEO RJ Scaringe has a short strategic horizon. Separately, Scaringe—who also serves as CEO of Mind Robotics—noted that industrial robotics efforts should focus on robotic hands rather than complex motions like back flips, which he argues introduce unnecessary complexity.

Beyond the Uber-Rivian deal, the mobility sector remains active with several funding rounds and acquisitions:

• Advanced Navigation: The Australian navigation and autonomous systems startup raised $110 million in a Series C funding round.
• Arc Boat Company: The Los Angeles electric boat startup raised $50 million in its Series C funding round.
• BusRight: The school bus routing startup raised more than $30 million.
• M&A Activity: Amazon acquired Zurich-based autonomous robotics startup Rivr, while Zenobē Energy purchased Revolv, a fleet charging startup based in San Francisco.
• Bezos Fund: Jeff Bezos is reportedly raising $100 billion for a new fund.
• Nikola Founder: Trevor Milton, the founder of the now-bankrupt electric truck startup Nikola who was pardoned by President Trump, is trying to raise $1 billion for AI-powered planes.
• Cybersecurity: A cyberattack on U.S. vehicle breathalyzer company Intoxalock has left drivers across the United States stranded.

Why it matters

The deal marks a significant partnership where Uber is both the developer of the self-driving system and the vehicle manufacturer, while Rivian sacrifices its 2027 profitability goal to fund the autonomy efforts.