Uber orders up to 24000 Volvo SUVs for its self-driving fleet

21 November, 2017, 01:03 | Author: Valerie Burke
  • Volvo and Uber expand tie-up in race to dominate self-driving cars

This agreement is a continuation of a relationship between the two firms that began back in 2016 when Volvo began supplying Uber with vehicles to use for self-driving tech testing. It is worth Recalling that a year ago, the Autonomous taxi based on the Ford Fusion are working in test mode in Pittsburgh, Pennsylvania. However, the tests still feature a human in the driver's seat ready to intervene if necessary.

Volvo isn't going to do anything on the self-driving front.

The announcement constitutes the latest development in the burgeoning autonomous ride-sharing space, following the recent news that Alphabet's Waymo will be launching a driverless ride-sharing platform beta, and the news from September 2017 that Lyft had teamed up with Ford.

And you never know; if the Uber you "hail" doesn't have a driver, it may actually turn up exactly where you want it to. However, Uber is now losing about $600 million per quarter, with its largest cost belonging to driver labor.

Five months into Uber's campaign to improve relations with its drivers, the company has inked a deal with Volvo to buy tens of thousands of autonomous vehicles that could eventually replace them. Uber already has a deal in place to get some vehicles from Mercedes-Benz.

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'The automotive industry is being disrupted by technology and Volvo Cars chooses to be an active part of that disruption, ' Chief Executive Officer Hakan Samuelsson said.

Volvo, meanwhile, says the project will help it reach its own goal: being the "supplier of choice" for ride-sharing service providers around the world.

The agreement marks a bold step forward for Uber, both for its autonomous program and its overall operational strategy.

The tests - which have involved human operators to intervene if anything happens - took a beating in March, when one of the Volvo's crashed and flipped on its side in Arizona (Uber was not at fault in the accident and was hit by another vehicle that failed to yield).

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