Uber partners with Lucid on new robotaxi service

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Daniel Burke-Aguero
Daniel is a contributor at Mindset. He is a professor at the University of Missouri.
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Photo by Ant Rozetsky on Unsplash

Uber announced a landmark partnership with electric vehicle maker Lucid on Thursday, investing $300 million in the company over the next six years. The deal, aimed at deploying more than 20,000 robotaxis in a major U.S. urban hub by next year, marks a significant step in the ride-hailing giant’s journey toward fully autonomous vehicle operations. As part of the agreement, autonomous vehicle startup Nuro will develop the self-driving technology that Lucid will utilize to supply Uber with the fleet of robotaxis.

This collaboration is set to catapult Uber into a new realm of transportation, leveraging Lucid’s advanced electric vehicle capabilities and Nuro’s cutting-edge autonomous driving systems. “We’re thrilled to partner with Nuro and Lucid on this new robotaxi program, purpose-built just for the Uber platform, to safely bring the magic of autonomous driving to more people across the world,” said Uber CEO Dara Khosrowshahi in a statement. Lucid’s interim CEO Marc Winterhoff described the partnership as an opportunity to enter a “completely new” market.

“We’ve been chosen because of our EV technology leadership,” Winterhoff explained, noting that the initiative could eventually include Lucid’s future vehicles currently in development. Nuro, which is backed by Google and the SoftBank Vision Fund, will integrate its “level 4 self-driving system” software into the cars.

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Uber’s leap into autonomous driving

This technology allows vehicles to operate autonomously under normal traffic and weather conditions without requiring a human driver. The collaboration with Lucid and Nuro is Uber’s latest move in the autonomous vehicle sphere, following an earlier alliance with Waymo. Waymo’s Level 4 vehicles are currently operational in select U.S. cities, including Austin, Texas.

Lucid’s Gravity vehicles, featuring a 450-mile range, are anticipated to reduce operational costs and charging times, thereby enhancing accessibility for Uber’s customer base. Testing for the first prototype vehicle is already underway at Nuro’s proving grounds in Las Vegas. “This deal is a blueprint for a robotaxi program that’s both commercially viable and globally scalable,” Nuro stated in a press release.

The announcement has been well-received by the market, with Lucid stock soaring by 36% on Thursday, though Uber shares remained flat. This partnership underscores the rapidly growing demand for driverless cars and positions Uber at the forefront of the autonomous vehicle revolution.

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Daniel is a contributor at Mindset. He is a professor at the University of Missouri.