Uber has already demonstrated its self-driving auto technology many times and it's now ramping up its efforts to create its very own driverless vehicle fleet.
The deal is worth about $1.4 billion, according to TechCrunch, citing a story in the Financial Times. Uber already uses Volvo's XC90 as the testbed for its self-driving system, which is now undergoing trials in Arizona and Pittsburgh.
Bloomberg said the deal involved 24,000 XC90s and that Uber's order boosts efforts to replace human drivers, the biggest cost in its on-demand taxi service. Volvo intends to use the technologies developed with Uber for its own vehicle production in the future.
Volvo has signed a framework agreement with Uber on a three-year deal to sell it up to 24,000 cars that will become part of the ride-sharing giant's first robotaxi fleet.
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The premium XC90 SUV carries a base retail price of around $47,000 in the US.
She said the new agreement puts Uber on the path toward rolling out mass-produced autonomous cars at scale.
The Swedish automaker previously provided a small number of XC90 s for autonomous pilot programs Uber operated in several cities, including San Francisco and Phoenix.
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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Volvo, meanwhile, says the project will help it reach its own goal: being the "supplier of choice" for ride-sharing service providers around the world.
Volvo said the vehicles "incorporate all the necessary safety, redundancy and core autonomous driving technologies that are required for Uber to add its own self-driving technology".
Volvo Cars Chief Executive Hakan Samuelsson said, "We believe this is a new segment, a new business".
If you're thinking about making ends meet as an Uber driver that might not be a good long-term career option with the ride-hailing services moving quickly towards becoming a self-driving vehicle business.
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