Uber to buy 24000 Volvo SUVs for its driverless fleet

Uber to buy 24000 Volvo SUVs for its driverless fleet

This agreement is a continuation of a relationship between the two firms that began back in 2016 when Volvo began supplying Uber with vehicles to use for self-driving tech testing.

Uber will buy 24,000 XC90 SVUs from Volvo to form a fleet of driverless vehicles, reports Bloomberg.

So a year ago Volvo partnered with Uber to deliver the XC90 to the ride firm to add their own self-driving capabilities and trial the whole thing out in Pittsburgh. San Francisco-based Uber will add its own sensors and software to permit pilot-less driving.

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

Uber's initiative to purchase 24,000 speeds up the process to replace human drivers.

Volvo's agreement with Uber and Ford's with Lyft show the pressure on automakers to avoid becoming obsolete in a world of increased automation, and on ride-services companies to start automating to cut driver costs and turn profits.

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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.

Moreover, the deal marks a potentially major shift in Uber's strategy; from a taxi app to an operator of a fleet of cars.

"The only way we could control our own destiny was to work with this technology that had the potential to disrupt our business, and have direct involvement in the creation of it", Jeff Miller, Uber's head of automotive alliances said, according to the Times.

Despite an ongoing lawsuit with Alphabet's GOOGL Waymo and the departure of one of its senior autonomous driving engineers earlier this year, Uber has made a huge step forward in its own quest to create a self-driving auto future. 'The more people working on the problem, we'll get there faster and with better, safer, more reliable systems'.

This latest move is a result of engineers from both companies developing the self-driving XC90 models that will be supplied to Uber.

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