Key Takeaways
- Uber, EV startup Lucid, and self-driving software maker Nuro are partnering to bring a new group of robotaxis to Uber’s platform.
- The companies plan to bring at least 20,000 Lucid vehicles with Nuro’s software to the Uber platform over the next six years.
- Uber has partnered with a number of other robotaxi makers including Google parent Alphabet’s Waymo as the autonomous vehicle market grows.
Rideshare giant Uber Technologies (UBER) said Thursday it’s partnering with electric vehicle startup Lucid Group (LCID) and self-driving software maker Nuro to develop robotaxis and bring them to Uber’s network.
Lucid shares skyrocketed 45% in recent trading on the news, bringing them back into positive territory for the year, while Uber shares were little changed Thursday after hitting a record high last week.
The vehicles are expected to launch in a yet-to-be-named “major US city” late next year, and Uber said it is looking to add at least 20,000 self-driving Lucid vehicles to its platform over the next six years in a larger number of markets. As part of the deal, Uber is investing hundreds of millions of dollars in Lucid and Nuro.
Lucid’s first Nuro-enhanced prototype vehicle is currently testing its autonomous driving capabilities at Nuro’s facility in Las Vegas, the companies said. Once the prototype is proven to be effective, Lucid will start manufacturing some of its Lucid Gravity SUVs with the necessary hardware to use Nuro’s self-driving software.
Wedbush analysts said in a note following the announcement that the deal could present some risks for Uber, as it could harm Uber’s relationship with Google parent Alphabet’s (GOOGL) Waymo. They added Lucid and Nuro’s production and technology abilities could also prove incapable of scaling as fast as Uber wants. The analysts wrote that other robotaxi makers like Waymo and Tesla (TSLA) have scale and technology advantages over Lucid and Nuro.
The collaboration is the latest in a string of autonomous driving partnerships for Uber, having recently expanded its work with Waymo in Atlanta, and inked deals with other autonomous vehicle and software makers to bring self-driving robotaxis to market in several countries around the world.
The robotaxi market is becoming increasingly competitive, with Tesla launching its own long-awaited service in Austin, Texas last month. Bank of America analysts recently identified dozens of companies that could benefit from the growing market, including chipmaker Nvidia (NVDA) and Caterpillar (CAT).