Ride-sharing giant Uber announced plans to invest up to $1.25 billion in electric vehicle maker Rivian to launch a fleet of up to 50,000 autonomous vehicles. The self-driving cars will begin operating in San Francisco and Miami in 2028, with plans to expand to 25 cities across North America and Europe by 2031.
Ride-sharing company Uber announced Thursday it plans to invest as much as $1.25 billion in electric vehicle manufacturer Rivian Automotive as part of an ambitious plan to deploy tens of thousands of self-driving cars.
The partnership calls for Uber and its fleet operators to purchase 10,000 autonomous Rivian R2 vehicles, with an option to acquire an additional 40,000 units by 2030.
According to the companies, the first wave of these driverless vehicles will hit the streets in San Francisco and Miami starting in 2028. The program will then grow to include 25 metropolitan areas spanning the United States, Canada, and Europe by 2031.
“We’re big believers in Rivian’s approach—designing the vehicle, compute platform, and software stack together, while maintaining end-to-end control of scaled manufacturing and supply in the U.S.,” Uber CEO Dara Khosrowshahi said in a statement. “That vertical integration, combined with data from their growing consumer vehicle base and experience managing the complexities of commercial fleets, gives us conviction to set these ambitious but achievable targets.”
The financial commitment from Uber will be distributed over several years through 2031, with payments tied to Rivian meeting specific self-driving technology benchmarks by designated deadlines. An initial $300 million will be provided once the agreement is finalized and receives regulatory clearance.
Based in Irvine, California, Rivian currently produces the premium R1T pickup truck and R1S SUV models, along with commercial delivery vehicles for Amazon and other companies. The company plans to start manufacturing its smaller R2 model this year. Rivian broke ground on a $5 billion manufacturing plant in Georgia last year after significant delays.
Following the announcement, Rivian’s stock price jumped 10% in early trading, while Uber shares saw a modest increase of less than 1%.
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