Ride-hailing giant Uber has committed close to half a billion dollars to self-driving startup Nuro in what seems to be the venture’s other major investment in developing commercial robotaxis.
While the robotaxi industry has hit the top gear in terms of re-accelerating development, testing, and early commercial deployment of self-driving vehicles, led by companies including Tesla, Alphabet’s Waymo, and Amazon’s Zoox, Uber has also entered the race by partnering with companies like Chinese tech giant Baidu, American electric vehicle maker Rivian, and British startup Wayve. It also is working with Waymo in some cities in the United States.
As per a Reuters report, Uber, through its three-way partnership with Nuro and electric vehicle company Lucid, is eyeing rolling out some 35,000 robotaxis, using Lucid’s Gravity SUVs and upcoming midsize vehicles, Nuro’s technology, and Uber’s platform.
Uber had previously invested USD 500 million in Lucid, apart from participating in a USD 203 million funding round for Nuro that valued the Silicon Valley-based self-driving startup at USD 6 billion.
“Uber has since made an unreported follow-on investment in Nuro significantly larger than its first funding,” Reuters said, quoting unnamed sources.
Uber has also reportedly agreed to provide additional funding for Nuro once it hits certain development and commercial milestones. Together these commitments tally nearly USD 500 million.
“The first few milestones have already been met on time, triggering the release of some funds from Uber,” claimed one of the sources.
“The remaining money is tied to targets including testing without a driver, planned for later this year, carrying passengers in those driverless cars, expected by the end of this year, and ramping up the service next year,” the person stated further.
Talking about Nuro, the startup initially made small delivery bots before pivoting to licensing its self-driving software to carmakers and mobility companies in 2024. The company is currently testing with safety drivers, eyeing a launch in the San Francisco Bay Area by the end of 2026. Apart from Uber’s backing, Nuro is also supported by investors including Nvidia and SoftBank.