Uber Invests in Lucid and Nuro for Robotaxi Service

Uber's Significant Investment in Autonomous Vehicle Technology

Uber is making substantial financial commitments, totaling hundreds of millions of dollars, into both electric vehicle manufacturer Lucid and autonomous technology company Nuro. This strategic move is designed to facilitate the launch of Uber’s own advanced robotaxi service.

Lucid and Nuro Partnership Details

As part of the agreement revealed on Thursday, Uber will allocate $300 million to Lucid. Simultaneously, a commitment has been made to purchase a minimum of 20,000 units of Lucid’s forthcoming Gravity SUV over the next six years.

These electric vehicles will be outfitted with Nuro’s autonomous vehicle system. Ownership and operational responsibilities for these vehicles will rest with Uber or its affiliated fleet partners.

Uber anticipates initiating its robotaxi service within a major U.S. metropolitan area in the coming year.

Production Timeline and Nuro Investment

According to a recent regulatory filing, the production phase for these specially adapted Lucid Gravity vehicles is projected to commence in late 2026.

Furthermore, Uber is investing an undisclosed, yet considerable, “multi-hundred-million dollar” sum into Nuro. Sources indicate this investment surpasses Uber’s financial contribution to Lucid.

A Year-Long Collaboration

Nuro co-founder and president, Dave Ferguson, stated that the agreement between the three companies was the result of a year-long process.

He explained that this timeframe reflects the complexity of the undertaking, noting Uber’s thorough evaluation of numerous autonomous vehicle companies to identify the optimal partner for their ambitious robotaxi program.

“We are incredibly pleased to have been selected as that partner,” Ferguson added.

Progress in Development and Vehicle Suitability

Engineers from both Lucid and Nuro have already achieved notable progress on the project. A prototype driverless vehicle is currently undergoing testing on a dedicated closed track at Nuro’s testing facility in Las Vegas.

Ferguson highlighted that Lucid’s Gravity SUVs are particularly well-suited for this application, as they are already equipped with the hardware redundancies necessary for a Level 3 automated driving system. (Level 3, as defined by the Society of Automobile Engineers, permits drivers to briefly disengage from steering and observation under specific conditions.)

The Nuro-integrated Gravity vehicles will operate at Level 4 automation, enabling the vehicle to manage all driving functions within defined parameters without human intervention. The existing redundancies within the Lucid vehicles simplified the integration process for Nuro’s self-driving system.

Uber's Broader AV Strategy

Over the past two years, Uber has been actively establishing partnerships with autonomous vehicle technology companies, encompassing a wide range of applications for self-driving systems.

The ride-hailing company now collaborates with over 18 organizations globally, spanning ride-hailing, delivery services, and the trucking industry.

Recent collaborations this year include agreements with May Mobility (Ann Arbor, Michigan) and Volkswagen, alongside Chinese autonomous driving companies Momenta, WeRide, and Baidu.

Existing Partnership with Waymo

Uber’s most prominent U.S. partnership, and one currently in commercial operation, is with Waymo. The two companies jointly offer a “Waymo on Uber” service in Austin and Atlanta.

Investment Reflects Market Ambition

This deal underscores Uber’s willingness to invest heavily in the rapidly evolving autonomous vehicle market, with the aim of securing a leading position.

Validation for Nuro's Strategic Shift

The agreement also serves as validation for Nuro, which has secured over $2 billion in funding from prominent investors since its founding in 2016. Initially, the startup concentrated on developing a fleet of low-speed, on-road delivery robots.

However, facing financial constraints and challenging capital markets, Nuro implemented multiple rounds of layoffs in 2022 and 2023.

In the previous year, Nuro adjusted its business strategy to prioritize its core autonomous driving technology. The company discontinued the low-speed delivery model and began focusing on licensing its autonomous vehicle technology to automakers and mobility service providers.

This strategic shift extended Nuro’s financial runway from 1.5 years to 3.5 years, according to the company.

However, a licensing agreement was crucial to demonstrate the success of this new direction. The Uber agreement, along with other ongoing negotiations, suggests that this pivot is proving effective.