Uber will invest up to $1.25 billion in electric vehicle maker Rivian as part of a deal to deploy thousands of fully autonomous robotaxis over the next decade.
The investment, reported by Reuters on Thursday, will see Uber roll out at least 10,000 self-driving R2 SUVs from 2028, marking a major push into the rapidly evolving autonomous mobility space.
The development comes at a time when drivers operating on Uber, Bolt, and InDrive in Nigeria have embarked on a three-day strike, which began on Sunday, to press home demands for better pay and improved working conditions.
What Uber is saying
Uber said it will invest up to $1.25 billion in Rivian as part of a long-term partnership to roll out autonomous vehicles, starting with 10,000 robotaxis.
- “Should all milestones be achieved, the companies will have deployed thousands of unsupervised Rivian R2 robotaxis across 25 cities in the U.S., Canada, and Europe by the end of 2031,” the companies said.
As part of the agreement, Uber will make an initial $300 million investment, with the remaining funds to be committed through 2031, depending on Rivian meeting key autonomous driving milestones.
The robotaxis—based on Rivian’s upcoming R2 SUVs—will be available exclusively on Uber’s platform from 2028, beginning with cities such as San Francisco and Miami. Uber also retains the option to purchase up to 40,000 additional vehicles starting from 2030.
The company is positioning itself as a marketplace for multiple autonomous vehicle operators, with existing partnerships across the industry, including with Waymo, Baidu, and Lucid, as well as collaboration with Nvidia to support AI-driven systems.
More insights
Globally, interest in driverless taxis has surged, with companies accelerating investments in artificial intelligence and autonomous driving technologies to cut costs and improve efficiency. Major players, including Tesla and Alphabet’s Waymo, have ramped up deployments in recent months.
However, the situation contrasts sharply with developments in Nigeria, where drivers are grappling with economic pressures and protesting conditions on ride-hailing platforms.
Executives of the Amalgamated Union of App-Based Transporters of Nigeria (AUATON) said drivers are prepared to escalate their actions if their demands are not met. In an exclusive interview with Nairametrics, the union’s Vice President (South West), Aina Kolawole, said efforts to resolve issues amicably had failed, prompting the strike.
- “Before now, we have written series of letter to all of them (Uber, Bolt, and InDrive), they acknowledged our letters, but that was where it ended,” he said.
He added that the next step could involve direct action against the companies.
- “The next is to picket their offices and disrupt their operations. We will use every legal means to make sure they listen to us.”
Similarly, Lagos State Chairman of AUATON, Comrade Jaiyesimi Azeez, said many drivers are struggling to survive despite public perceptions.
- “These people will tell the public that we are making N200,000 per day, which is far from the reality. A lot of us cannot even fuel our car,” he said.
In response to enquiries, Uber said it remains open to dialogue with drivers, though it did not directly address their demands.
- “Drivers are at the heart of our business, and we remain committed to engaging constructively with them through regular roundtable discussions.
- “Uber operates an incredibly large and dynamic marketplace, but it only works when it works for all users – riders and drivers. Aligning our joint interests is a fundamental principle in how we run our platform,” a spokesperson said.
What you should know
Ride-hailing platforms have become a major source of income for many Nigerians, particularly in urban centres where unemployment and underemployment remain high.
While Uber’s robotaxi plans are currently focused on markets in North America and Europe, and may not pose an immediate threat locally, drivers in Nigeria continue to face rising operational costs, including high fuel prices and platform commissions.
The pressure has been worsened by recent increases in petrol prices, driven in part by global oil market disruptions linked to tensions in the Middle East.
Similar disputes have occurred in the past, particularly after the removal of fuel subsidies in 2023, when drivers argued that fare increases by platforms did not adequately reflect the rising cost of operations—leading some to resort to offline negotiations with riders.
