Uber has agreed to purchase 24,000 Volvo XC90 SUVs for model years 2019–2021 as part of its effort to scale up a fleet of self-driving vehicles. The $1.4 billion deal will provide Volvo SUVs that Uber plans to equip with its own sensors and autonomous driving software.
Jeff Miller, Uber’s head of auto alliances, said this agreement “puts us on a path toward mass-produced, self-driving vehicles at scale.” He emphasized that broad collaboration and more teams working on autonomous systems will accelerate development and help produce safer, more reliable technology.
Uber is already testing XC90s modified for autonomous operation in Arizona, Pittsburgh, and San Francisco. Those test vehicles still include human safety drivers behind the wheel, but Uber’s plan anticipates future operations without on-board backup drivers once the technology and regulatory approvals allow.
In addition to expanding its autonomous vehicle program, Uber has introduced a number of rider-focused improvements to the app. Enhancements to the pickup experience now include a live location feature to help drivers and riders find each other more easily, and windshield color indicators to simplify identification. Uber has also rolled out a tipping option within the app and the ability to add multiple stops to a single trip, making short multi-stop journeys more convenient for users.
The Volvo order represents a major step for Uber’s long-term strategy to deploy self-driving cars at scale. By taking delivery of production vehicles from an established automaker and integrating its own hardware and software, Uber aims to shorten development time and move toward a commercially viable autonomous service—contingent on the continued advancement of autonomous technology and the appropriate regulatory environment.
As testing continues in select U.S. cities, the company will likely refine safety systems, rider features, and operational procedures based on real-world data. Those ongoing improvements are intended to support a transition from supervised test vehicles to fully driverless operation when it is safe and permitted to do so.