|Photo By carlos4916 via Pixabay|
Ride-hailing service Uber announced its three-year contract with vehicle manufacturer Volvo Cars to buy its 24,000 vehicles, starting early 2019. Uber claims that the vehicles will serve as their fleet of new self-driving vehicle cars.
The new line of vehicles, according to Volvo, will be manufactured following the car architecture of Volvo’s XC60 midsize SUV and 90 series. The vehicle manufacturing company also issued a statement that its engineers are working closely with Uber to integrate a self-driving technology.
Uber’s head of automotive alliances Jeff Miller said: “Uber has been planning for a while and is investing in doing this at scale.” He adds that a part of this scale is to ensure that there will be a clear way towards a safe autonomous vehicle.
The deal between the two companies is a major step for Uber to commercialize its autonomous vehicles although the financial terms regarding the agreement between Uber and Volvo have not yet been disclosed.
While Uber has faced public relations challenges after another, such as the news that it concealed the fact that hackers stole data of its 57 million customers, it is making a big upfront investment on self-driving cars. The initiative was made possible under the leadership of new Uber CEO Dara Khosrowshahi.
The Uber-Volvo agreement follows after autonomous car development company, Waymo, revealed that it will deploy self-driving vehicles without a human in its driver’s seat.