Uber (UBER) is making a major push into autonomous vehicles through a new partnership with electric vehicle maker Lucid (LCID) and self-driving tech firm Nuro.
The companies jointly announced on Thursday a “next-generation premium global robotaxi program” built exclusively for Uber’s platform. The initiative will integrate Nuro’s Level 4 autonomous driving software into Lucid’s Gravity SUV, with plans to deploy over 20,000 vehicles in the next six years.
The vehicles, owned and operated by Uber or its third-party fleet partners, are expected to hit the road in a major U.S. city as early as next year. A prototype is already undergoing testing at Nuro’s Las Vegas proving grounds.
Lucid shares surged nearly 30% following the announcement.
As part of the agreement, Uber is investing $300 million into Lucid and committing a similar “multi-hundred-million dollar” investment into Nuro.
“We’re thrilled to partner with Nuro and Lucid on this new robotaxi program, purpose-built just for the Uber platform, to safely bring the magic of autonomous driving to more people across the world,” said Uber CEO Dara Khosrowshahi.
Lucid interim CEO Marc Winterhoff added, “This investment from Uber further validates Lucid’s fully redundant zonal architecture and highly capable platform as ideal for autonomous vehicles. This is the start of our path to extend our innovation and technology leadership into this multi-trillion-dollar market.”
The move puts Uber in direct competition with current industry leaders like Waymo, which operates robotaxi services in select U.S. cities. Notably, Uber has an existing partnership with Waymo in Austin and Atlanta.
Tesla (TSLA) is also expanding its autonomous efforts, with recent testing underway in Austin and plans to expand into the Bay Area—though reports indicate permit applications have yet to be filed.
Uber previously exited the autonomous vehicle business following a fatal 2018 accident in Tempe, Arizona.
For Lucid, the partnership follows a strong Q2 delivery update and the rollout of its Gravity SUV. The Uber order could significantly help Lucid reach its 2025 goal of delivering 20,000 vehicles, provided production ramps successfully.
The collaboration may also reflect the deep financial ties both companies share with Saudi Arabia’s Public Investment Fund (PIF). As of March 31, PIF held a $5.31 billion stake in Uber and a $4.29 billion stake in Lucid—making it Lucid’s majority shareholder.
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