Uber bets big on Rivian, investing $1.25B for self-driving robotaxis to roll out in 2028

Uber Technologies Inc. and Rivian Automotive Inc. unveiled a major pact to roll out autonomous robotaxis in key cities. The deal calls for Uber to invest up to $1.25 billion in Rivian through 2031, according to the Chicago Business Journal. This funding hinges on Rivian meeting autonomous driving milestones.

Uber is said to start with a $300 million outlay after regulatory nods. The focus: 10,000 fully driverless Rivian R2 SUVs during Phase One. Chicago Business Journal notes that these midsize electric vehicles will hit the roads exclusively via Uber's app.

R2 rollout targets major hubs by 2028

Initial launches come to San Francisco and Miami in 2028, Reuters reports. Service will grow to 25 cities across the U.S., Canada and Europe by 2031. According to Reuters, from 2030, Uber can negotiate buying up to 40,000 more R2s, eyeing a 50,000-vehicle fleet.

Rivian's R2s hail from its Normal, Illinois plant. The firm builds vehicles, software and computing in-house. “That vertical integration, combined with data from their growing consumer vehicle base and experience managing the complexities of commercial fleets, gives us conviction to set these ambitious but achievable targets,” said Uber Chief Executive Dara Khosrowshahi, as reported by Chicago Business Journal.

Rivian Chief Executive RJ Scaringe hailed the tie-up. “We couldn’t be more excited about this partnership with Uber,” Scaringe said. “It will help accelerate our path to level 4 autonomy to create one of the safest and most convenient autonomous platforms in the world,” he added, per the same report.

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Rivian's tech stems from its December 2025 platform. It packs 11 cameras, five radars and one LiDAR for road navigation, according to Chicago Business Journal. Customer driving data sharpens the system over time.

The pact aids Rivian amid shifted profit goals. It no longer eyes adjusted core profit in 2027 due to ramped R&D, as reported by Reuters. BNP Paribas analyst James Picariello called it expected. Rivian shares dipped after early gains.

Uber eyes a robotaxi marketplace. It already links with Waymo, Nvidia and others. Interest in driverless taxis surges as AI tackles traffic woes.