Ride sharing app Uber has taken its driverless programme to the next level as it has purchased 24,000 Volvo XC 90 as part of its driverless fleet. The cars will be delivered between 2019-2021.
Why Uber has made this move
Doing away with drivers, reduces Uber’s cost of operation and its most variable factor. Uber drivers have gone on strikes in several parts of the world due to poor working conditions. The company also maximizes its earnings using driverless cars. The renewed push also signals the company has moved ahead from the various crisis which have engulfed it this year.
Volvo also gains
In addition to the monetary benefits of the order, the sale also puts Volvo in the forefront of driverless technology. If all goes well with the scheme by Uber, other companies may be encouraged to buy the vehicles.
Volvo was founded on the 14th of April 1927. The company is however currently owned by the Geely Holding Group. In July this year, the company announced that all the cars launched from 2019 would be fully electric or hybrid-electric.
Uber is a ride sharing app was founded in 2009 as UberCab by Garrett Camp, the cofounder of StumbleUpon, and Travis Kalanick, who had sold his Red Swooshstartup for $19 million in 2007. Following a beta launch in May 2010, Uber’s services and mobile app officially launched in San Francisco in 2011, before expanding globally.