What just happened? Uber is deepening its bet on autonomous driving with a move that could reshape its long-term strategy: a multi-billion-dollar partnership with electric vehicle maker Rivian. The ride-hailing company plans to invest up to $1.25 billion in Rivian as part of an initiative to introduce 10,000 fully autonomous SUVs into its fleet starting in 2028.
The deal provides both companies with strategic advantages. For Uber, access to a dedicated robotaxi fleet supports its broader push to integrate multiple self-driving partners across its platform. For Rivian, the capital infusion offers financial breathing room and a guaranteed customer as it accelerates the development of autonomous technology.
Uber's initial investment will total $300 million, with additional funding through 2031 contingent on Rivian meeting specific milestones on its self-driving roadmap.
Rivian, known for its R1T pickup and R1S SUV, has yet to bring an autonomous vehicle to market. In December, however, it unveiled its first in-house computer chip designed specifically for self-driving capabilities. The company is also preparing to launch its smaller and more affordable R2 SUV this quarter – the model that will form the backbone of the new robotaxi fleet.
The investment comes as Rivian recalibrates its profitability expectations. The automaker now says it does not expect to achieve adjusted core profit in 2027, citing increased research and development spending tied to its autonomous efforts. Analysts, however, are largely unfazed.
"We believe this was widely expected," BNP Paribas analyst James Picariello told Reuters. He projected that Rivian will reach breakeven EBITDA in 2028 and generate positive free cash flow by 2030, adding that Uber's investment should offset much of the higher R&D spending.
Under the new agreement, Rivian's R2-based robotaxis will debut exclusively through Uber in San Francisco and Miami. Uber retains the option to purchase up to 40,000 additional vehicles beginning in 2030. If Rivian meets all milestones, the company expects to have autonomous taxis deployed across 25 cities in North America and Europe by the end of 2031.
For Uber, the Rivian deal builds on an expanding network of collaborations across the autonomous ecosystem. The company already works with Waymo, Baidu, and Lucid, among others, and leverages Nvidia's AI and simulation platforms to support the design and scaling of autonomous systems.
Uber's long-term vision is to become a marketplace for multiple robotaxi operators, connecting passengers to fleets regardless of manufacturer or autonomy stack.