Uber buys 24,000 vehicles to create a fleet of driverless autos

Published on : Wednesday, November 22, 2017

uberIn an effort to replace human drivers, Uber Technologies Inc agreed to buy 24,000 sport utility vehicles from Sweden’s Volvo Cars to bring a fleet of driverless autos.

 

The delivery of XC90s priced at $46,900 is expected to happen between 2019 and 2021. It was reported that the San Francisco based Uber will add sensors and softwares on its own to permit pilot-less driving.

 

 

This is Uber’s biggest cost in its on-demand taxi service, the company had complied to use 100XC90s for self driving tests in Pittsburgh. It will further strike a deal and include autonomous vehicle from Daimler AG’s Mercedes-Benz in its network.

 

Jeff Miller, Uber’s head of auto alliances said that the new agreement will help in mass production of self-driving vehicles at scale, the more people work on the problem, the faster, safer and reliable system they gather.

 

Uber buying vehicles implies potential sales but will loom disruption to the existing business model of the autos sold to the private owners.

 

The $70 billion valuation will put Uber at par with Germany’s Daimler.

 

 

The sales of Volvo will be boosted and it will lower the cost of Chinese-controlled group’s own fully-autonomous cars planned from 2021.

 

A base vehicle with core driverless technology has been worked on jointly by Volvo and Uber that can later be augmented. Volvo intends to use it for its future offering.

 

 

CEO Hakan Samuelsson said that the automotive industry will be disrupted by this technology and Volvo Cars will be an active part of it. Volvo will be the first one to deliver in the emerging market.

 

 

The launch of the driverless vehicle is yet to be announced by Uber and anyone in the industry can deploy its technique. People using hand signals and eye contact to negotiate traffic will be a major challenge for the autonomous autos.

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