Uber set to purchase 24000 autonomous cars in driverless ride-sharing bid

Uber set to purchase 24000 autonomous cars in driverless ride-sharing bid

As part of the deal, Uber will buy as many as 24,000 XC90 Volvo SUVs between 2019 to 2021, making the agreement potentially worth over $1 billion. Police said the incident was caused by a human driver of another vehicle not the Uber self-driving auto.

Uber and its investors have been itching for some good news and it appears that this partnership with Volvo is a great signs for its future. The deal is an extension of an agreement Uber made with Volvo two years ago, when the company first began heavy research on autonomous vehicles. Uber agreed, saying, "This new agreement puts us on a path toward mass produced self-driving vehicles at scale".

The deal builds on a non-exclusive agreement signed back in 2016 by Uber and Volvo, which is expected to release its first self-driving auto in 2021.

The tests are being conducted in Tempe, Arizona, and Pittsburgh. Uber will be adding its own sensors and software to these cars so that they can drive themselves.

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Ford announced earlier this year it is working with Uber rival Lyft on a driverless vehicle trial programme, while Chrysler is supplying Pacific hybrids to Google's self-driving arm Waymo for its self-driving taxis trial. Under the new "framework agreement", Volvo will supply thousands of vehicles already fitted with "core" autonomous and safety systems, to which Uber will adds its own self-driving tech.

Uber's Volvo deal is a reminder that it's far and away the biggest player in the ride hailing industry.

"The issue is that we don't have any legislation in any city of the world that would remotely allow this sort of thing to happen at the moment", said Paul Newton, director at the consultancy IHS Automotive, about the idea of a totally driverless taxi service. Uber founder Travis Kalanick - who was ousted earlier this year - had estimated that by using fully driverless vehicles the cost of using the service would drop below what it costs to own and operate a private vehicle.

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