Uber has entered into a framework agreement with Volvo for the supply of 24,000 SUVs as autonomous driverless cars. The deal for delivery of cars will start from 2019 until 2021.
It is a non-exclusive agreement between these two firms and is a continuation of their relationship to bring a well-known car maker and a silicon valley technology company together in this field of driverless car transportation.
Why Volvo Is Interested To Sell 24,000 SUVs To Uber
The reason for such a huge number of autonomous vehicle delivery is very clear. Volvo knows that the future of travel is going to move in the direction of the automatic vehicle and it doesn't want itself to be left behind.
Volvo has been developing its autonomous technology for very long now and has a fully modular, in-house production facility. Volvo will produce the base vehicles at its production line under the Scalable Product Architecture (SPA). According to Volvo, it is one of the most advanced car architectures in the world. The top of the line 90 series cars and the XC60 midsize SUV of Volvo are produced under this architecture.
"The automotive industry is being disrupted by technology and Volvo Cars chooses to be an active part of that disruption," says Volvo president and chief executive officer Håkan Samuelsson.
The engineers from both the firms have worked together to develop this partnership. The result is the premium XC90 SUVs that will run under the banner of Uber as driverless autonomous cabs.
The base vehicle will have all the safety features for which Volvo is known around the world. Also, the core autonomous driving technology will be fitted in its architecture. Uber will mount its own self-drive technology once the car reaches its assembly line.
With this deal, a possible mass production of the vehicles will happen in the near future.
"We're thrilled to expand our partnership with Volvo," says Jeff Miller, Head of Auto Alliances.
Remember, Uber is in stiff competition from the likes of Google, Baidu, and Lyft in the self-drive car technology and a deal of this magnitude with Volvo fuels the ambitions of Uber to stay ahead in this race.
Volvo is developing its own full-blown autonomous car technology. The first car is scheduled for release in 2021. The same platform which it is sharing with Uber will form the base for the upcoming autonomous cars in the future from its factories.