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Uber Strikes Deal With Volvo to Bring Self-Driving Cars to Its Network

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Image credit: zombieite via Flickr

The future is bright for autonomous, self-driving cars and renowned companies are striking to make fruitful partnerships so that they can make the most of out the technology coming into production. For example, Uber has recently announced their partnership deal with Volvo. As per the agreement, the renowned global transportation technology company (Uber) will purchase a total of 24,000 self-driving cars from Volvo. The non-binding framework deal will offer Uber an excellent way to overcome the setbacks in its autonomous driving division of Silicon Valley’s race.

According to Uber’s head of automotive alliances, Jeff Miller, they don’t exactly know the future of self-driving systems. But, the company believes that this emerging technology of autonomous vehicles can really bring a positive impact from the ride-sharing standpoint.

Note, this recent deal is part of a previous agreement that Uber has made with Volvo about two years ago. At that time, the famous ride-hailing company had just started its research and development efforts for driverless technology. Earlier, Uber hired a third-party component manufacturer in order to build essential software and hardware parts of autonomous vehicles. Next, the company decided to use Volvo’s technologically advanced driverless cars to bring a major change in the global transportation industry.

Volvo has provided a statement mentioning that Uber and Volvo will be collectively contributing $300 million USD to the project. The reputed pillars of technology and transportation industry like General Motors, Tesla, Ford, Lyft, and Google are already striving to gain a potential advantage in the future of autonomous cars. Each of these companies has taken a slightly different approach to accomplish their mission. For example, Ford and General Motors have bought software-based start-ups for the purpose of integrating driverless technology. Whereas, Tesla has recently debuted an electric, semi-autonomous truck that will be publicly launched in the next few years.

Uber has also done a rigorous research and development effort and teamed up with multiple manufacturers to design self-driving cars. Particularly, they have invested in its Advanced Technologies Group where a group of more than hundred talented developers and engineers are conducting autonomous vehicle research. The autonomous cars really have the potential to disrupt the entire transportation industry. That’s why Uber is keen to continue making a direct involvement in the process of designing driverless technology. And, their latest partnership with Volvo surely brings a solid momentum of Uber’s ambition of disrupting the transport industry through self-driving cars.

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