Uber to invest up to $1.25 billion in EV maker Rivian in deal to launch 50,000 robotaxis

Uber Technologies plans to invest up to $1.25 billion in electric vehicle maker Rivian Automotive as part of a deal to deploy up to 50,000 robotaxis in several countries through 2031, the companies announced Thursday.

The tie-up includes expectations for Uber, or its fleet partners, to purchase 10,000 autonomous versions of Rivian’s upcoming R2 electric vehicle, with the option to buy up to 40,000 more robotaxis beginning in 2030, according to a release from the companies.

Shares of Rivian were up nearly 4% in morning trading Thursday, while Uber’s stock was down less than 1% following the announcement.

The deal is the latest in a resurgence of announcements about autonomous vehicles and robotaxis, as companies attempt to capitalize on what investors have forecast as a multitrillion-dollar market. Many companies, including Uber, have previously failed to hit their targets when it comes to robotaxis.  

An initial $300 million investment from Uber to Rivian, which is preparing to begin R2 sales to consumers this spring, is expected soon following the deal’s signing, subject to regulatory approval, according to the release. That investment equates to about 19.55 million shares of the automaker, a Rivian spokesman confirmed.

Four other investment tranches will occur subject to hitting certain milestones by unspecified dates through 2031, according to a Thursday public filing from the automaker. Uber also is expected to pay certain licensing fees in connection with its use of Rivian’s autonomous driving system software, the filing said.

The companies said the R2 robotaxis are expected to be available exclusively through Uber’s ride-hailing and delivery platform in 25 cities across the the U.S., Canada and Europe. The first cities are planned to be San Francisco and Miami in 2028, they said.