Volvo signs framework agreement to power Uber with self-driving cars

Volvo signs framework agreement to power Uber with self-driving cars

So past year 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.

Under their pre-existing agreement, Uber already uses various customised Volvo vehicles - which include some of the carmaker's own self-drive hardware - and then adds on its own proprietary artificial intelligence technologies.

"This new agreement puts us on a path towards mass produced self-driving vehicles at scale", Miller said in a joint statement with Volvo. The deal is expected to be in between the year 2019 and year 2021 as reported by Bloomberg News.

No one knows what the future of self-driving cars will look like, or how long it will take to get there.

Uber would not share financial information about the project, and Volvo did not immediately respond to a request for further comment. The initiative has faced questions since Alphabet Inc.'s driverless auto division Waymo sued Uber this year, claiming the ride-hailing company stole trade secrets, and since the U.S. Justice Department opened an inquiry into the matter.

More news: Apple delays release of HomePod speaker until early 2018

According to the latest agreement, between 2019 and 2021 Volvo will sell Uber a massive fleet of XC90 SUVs readily available to be equipped with Uber's self-driving system that is now in development.

Uber has reached an agreement with Volvo to purchase a fleet of driverless cars as the ridesharing firm seeks to deploy autonomous vehicle technology. Uber's US$70 billion valuation already puts the group nearly on a par with Mercedes-Benz parent company Daimler.

The deal marks a milestone step in the U.S. firm's transition from an app used to summon a taxi to the owner and operator of a fleet of cars.

"The automotive industry is being disrupted by technology and Volvo Cars chooses to be an active part of that disruption", said Volvo CEO Håkan Samuelsson. Subsequently, Volvo will continue developing its own self-driving technology independent of Uber. This is the first commercial purchase of this size by a ride-hailing service.

Related Articles