Uber taps Rivian to build robotaxis in deal worth up to $1.25B

On Thursday, Rivian announced a groundbreaking partnership with Uber to develop a fleet of robotaxis based on its soon-to-be-released R2 SUV. This collaboration carries a potential value of up to $1.25 billion for the electric vehicle manufacturer. The initial phase of this alliance kicks off with a significant $300 million investment from Uber, which plans to acquire 10,000 fully autonomous R2 robotaxis for introduction in San Francisco and Miami by 2028. Moreover, Uber holds the option to purchase an additional 40,000 autonomous R2 SUVs beginning in 2030. The two companies aim to launch these robotaxis across 25 cities in the U.S., Canada, and Europe by the end of 2031, with the fleet exclusively operating within Uber’s platform. Despite the lucrative potential of this agreement, Rivian faces substantial challenges. Currently, the R2 SUV is yet to enter production, with manufacturing slated to commence by June. Additionally, Rivian has not yet tested any self-driving systems tailored for robotaxi operations. Compounding these hurdles, the robotaxis are expected to be manufactured at Rivian's factory in Georgia, which is still under construction. Nevertheless, Rivian's founder and CEO, RJ Scaringe, remains optimistic and has prioritized the advancement of automated driving technology. During the company's first “Autonomy & AI Day” in December, he emphasized that their efforts would enable Rivian to explore opportunities within the ride-sharing sector. Scaringe previously advocated for an AI-centric approach, transitioning from a rules-based framework to a system that employs large language models to enhance perception and navigation capabilities. This novel Rivian Autonomy Platform, which debuted in 2024 with the second generation of R1 vehicles, is designed to learn from fleet data, progressively increasing its autonomy. The company envisions a future where their vehicles can transition from hands-free driving on select highways to fully automated point-to-point navigation, expected to roll out later this year. Rivian aims to achieve a hands-off, eyes-off driving experience through a hardware upgrade, including a lidar sensor and an “autonomy computer” capable of processing five billion pixels per second. These advanced features, however, still fall short of what is classified as fully autonomous driving, which would require no driver intervention. The company aspires to reach this level of automation, known as “personal L4,” which denotes a system functioning without human oversight within specific environments. Scaringe reiterated Rivian’s commitment to automated driving during his appearance at SXSW 2026, emphasizing that their focus on achieving a hands-off, eyes-off system by 2027 is their primary investment priority. He expressed confidence in the progress of autonomous technology, stating that past advancements are not reliable indicators of future developments. Uber's collaboration with Rivian is not its first venture into the robotaxi realm, as the ride-hailing giant previously partnered with Lucid Motors and Nuro to create robotaxis based on Lucid's Gravity SUV, set for commercial deployment in San Francisco by the end of this year. Overall, Uber has formed partnerships with over 25 companies in the autonomous vehicle space, including its notable alliance with Waymo, which allows Waymo's robotaxis to operate through Uber's app in cities like Austin and Atlanta.