Ebi Atawodi, General Manager, UBER- Nigeria

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.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

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