Uber signed a $1.25 billion agreement with Rivian for up to 50,000 autonomous commercial vehicles, the largest autonomous vehicle fleet deal in history. The partnership positions Uber to compete directly with Waymo without building its own self-driving technology.
Uber and Rivian announced Tuesday a $1.25 billion commercial agreement under which Rivian will supply up to 50,000 purpose-built autonomous commercial vehicles to Uber's ride-hailing platform — the largest autonomous vehicle fleet deal in the industry's history. The vehicles, based on Rivian's commercial van platform and fitted with an autonomous driving stack developed in partnership with Uber's ATG (Advanced Technologies Group), will begin deploying in five pilot cities in early 2027 before a planned nationwide rollout through 2028 and 2029.
The deal is the clearest signal yet that Uber has found a viable path to autonomy that doesn't require it to rebuild the in-house self-driving technology it sold to Aurora Innovation in 2020. That sale, widely criticized at the time as a retreat from the industry's central competitive arena, looks considerably more strategic in retrospect: rather than burning billions on technology development, Uber has positioned itself as the platform layer in autonomous mobility — the company that owns the customer relationships, the demand aggregation, and the urban regulatory permits while sourcing the hardware and software from specialized partners.
Rivian brings two critical assets to the partnership. Its commercial van platform, originally developed for Amazon's delivery fleet, has accumulated more than 800 million operational miles in real-world delivery conditions — a training data set of extraordinary value for any autonomous driving system. The thermal management, battery architecture, and ruggedized electrical systems developed for those high-utilization delivery vehicles translate directly into what a robotaxi fleet requires: vehicles that run 20-plus hours per day, charge rapidly during off-peak windows, and survive the specific degradation patterns of stop-and-go urban driving over a five-to-seven-year operational lifespan.
“Rivian brings two critical assets to the partnership.”
Rivian CEO RJ Scaringe described the deal as "the beginning of the commercial era of autonomous transportation" in a press release Tuesday. Uber CEO Dara Khosrowshahi framed the partnership more bluntly: "We don't need to make the cars. We need to make the trips." Khosrowshahi estimated, in an accompanying investor presentation, that a fully deployed 50,000-vehicle Rivian fleet would complete approximately 2.5 million rides per day at current Uber utilization rates — generating roughly $3.5 billion in annualized gross bookings attributable to the autonomous fleet alone, before accounting for the approximately 70 percent cost reduction in driver-related expenses.
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The competitive context is the Waymo gap. Alphabet's autonomous subsidiary currently operates the only genuinely driverless commercial ride-hailing service at scale, with services active in San Francisco, Phoenix, Los Angeles, Austin, and Atlanta — five cities across which it completed approximately 150,000 rides per week in the most recent quarter for which data is available. By the standard metrics of autonomous vehicle deployment, Waymo is years ahead of any competitor. Uber's strategy, by partnering with Rivian, is effectively to bet that a fleet of 50,000 vehicles — even if their autonomous driving software is less mature than Waymo's at launch — will generate the real-world operational data to close that gap faster than Waymo can expand to new cities.
The five pilot cities for the initial Uber-Rivian deployment have not been named, but Uber sources speaking to Bloomberg described the selection criteria: cities with favorable regulatory frameworks for autonomous vehicles, dense enough demand to justify dedicated fleet sizing, and existing Uber operational density sufficient to manage hybrid human-autonomous transitions during the early deployment phase. Nashville, Denver, and Miami have been widely speculated by industry analysts; all three have been active in establishing autonomous vehicle permitting frameworks since 2024.
The financing structure of the deal rewards Rivian shareholders immediately. Uber is paying $1.25 billion upfront for the first 15,000 vehicles, with options to acquire an additional 35,000 at pre-negotiated pricing through 2029. The upfront payment provides Rivian with meaningful runway at a moment when the company has been managing a capital-intensive production scale-up: Rivian ended 2025 with $4.1 billion in cash, and the Uber contract's upfront cash essentially funds the dedicated production tooling required for the autonomous commercial variant without drawing down existing reserves. Rivian shares rose 18.4 percent in pre-market trading on the news.
The broader autonomous vehicle market context is notable for how much money is being committed on the assumption that full autonomy at scale is achievable within this decade. Total autonomous vehicle investment across all companies globally was approximately $34 billion in 2025, according to PitchBook data. General Motors' Cruise unit has been rebuilding after its 2023 operational suspension. Amazon's Zoox is targeting 2027 for commercial deployment. Tesla's Full Self-Driving subscriptions now generate $1.2 billion annually but have not achieved the consistent Level 4 autonomy required for driverless commercial operation. The Uber-Rivian deal is the largest single capital commitment to autonomous commercial deployment in the industry's history.
For consumers in the five pilot cities, the deployment timeline (early 2027) means robotaxis remain 18 months away from the first real-world test. When they arrive, Uber estimates the pricing will be 20 to 35 percent below comparable human-driven rides, driven by the elimination of driver compensation. For Uber investors, the $3.5 billion in projected incremental annual gross bookings from the fleet — combined with the margin expansion from driver cost elimination — represents the company's most significant potential earnings catalyst since its IPO. The stock rose 9.7 percent on the announcement. For Rivian shareholders, the contract validates the commercial vehicle strategy and provides production visibility through 2029. For drivers currently earning income from Uber, the timeline is clear: the first phase of automated displacement will begin in pilot cities in 2027 and expand nationally through 2028–2029.
Uber signed a $1.25 billion deal with Rivian for up to 50,000 purpose-built autonomous commercial vehicles. Uber pays $1.25 billion upfront for the first 15,000 vehicles, with options for 35,000 more at pre-negotiated pricing through 2029. The vehicles use Rivian's commercial van platform fitted with an autonomous driving stack developed jointly with Uber's ATG. Initial deployment in five pilot cities begins in early 2027.
How does this deal position Uber against Waymo?
Waymo is years ahead — it operates driverless commercial services across five cities with ~150,000 rides per week. Uber's strategy is not to build competing technology but to deploy a massive fleet (50,000 vehicles) that generates real-world operational data to close the technology gap through volume. Uber owns the platform layer: customer relationships, demand aggregation, and urban regulatory permits.
Why is Rivian a good partner for autonomous vehicles?
Rivian's commercial van platform has accumulated 800+ million operational miles in real-world Amazon delivery conditions — a massive autonomous driving training dataset. Its thermal management, battery architecture, and rugged electrical systems are proven for high-utilization (20+ hour/day) operation, which is exactly what a commercial robotaxi fleet requires for economic viability.
How much cheaper will autonomous Uber rides be?
Uber estimates autonomous rides will be priced 20–35% below comparable human-driven fares, driven by eliminating driver compensation (which currently represents the largest cost component of each ride). A fully deployed 50,000-vehicle Rivian fleet would complete approximately 2.5 million rides per day at current utilization rates, generating ~$3.5 billion in annualized gross bookings.
When will autonomous Uber rides be available in my city?
The first five pilot cities begin in early 2027. Uber has not named them, but industry analysts speculate Nashville, Denver, and Miami based on their autonomous vehicle regulatory frameworks. A nationwide rollout is planned for 2028–2029. Cities with favorable permitting frameworks and existing high Uber ride density are the most likely early candidates.
