Uber to Invest Up to $1.25 Billion in Rivian for Robotaxi Expansion

Uber Technologies said on Thursday it will invest up to $1.25 billion in electric vehicle maker Rivian Automotive as part of a partnership to deploy up to 50,000 autonomous robotaxis by 2031.

The agreement includes an initial investment of $300 million, expected to be made following regulatory approval. Additional funding will be released in phases tied to performance milestones through the end of the decade.

Under the deal, Uber and its fleet partners plan to purchase at least 10,000 autonomous versions of Rivian’s upcoming R2 electric vehicle, with an option to acquire up to 40,000 additional units starting in 2030.

The companies said the robotaxis will operate exclusively on Uber’s ride-hailing and delivery platform across 25 cities in the United States, Canada and Europe, with initial deployments planned in San Francisco and Miami by 2028.

Shares of Rivian rose in early trading following the announcement before closing about 3% higher, while Uber shares declined approximately 1%.

The partnership marks the latest development in the growing autonomous vehicle sector, as companies accelerate investments in robotaxi services amid expectations of significant long-term market potential.

Uber Chief Executive Dara Khosrowshahi said the company’s confidence in Rivian is based on its integrated approach to vehicle design, software, and manufacturing.

Rivian CEO RJ Scaringe said advancements in artificial intelligence and computing capabilities are expected to support the company’s expansion into autonomous mobility.

The deal follows a series of recent announcements by Uber involving partnerships with multiple companies in the autonomous and electric vehicle space, as it expands its long-term strategy in mobility technology.

Rivian, which is preparing to launch consumer sales of its R2 model, said the agreement also includes licensing arrangements related to its autonomous driving software.