Uber taps Rivian to build robotaxis in deal worth up to $1.25B

Uber has entered a partnership with electric vehicle maker Rivian to develop thousands of robotaxis based on Rivian’s upcoming R2 SUV, in a deal potentially worth up to $1.25 billion. Uber is initially investing $300 million in Rivian and plans to purchase 10,000 fully autonomous R2 robotaxis for deployment in San Francisco and Miami by 2028, with options to buy an additional 40,000 vehicles starting in 2030. The companies aim to expand the robotaxi service to 25 cities across the U.S., Canada, and Europe by the end of 2031, with the fleet exclusively available on Uber’s platform. Despite the ambitious plans, the project faces significant challenges. Rivian has yet to begin production of the R2 SUV, expected to start by June, and has not yet tested or deployed the self-driving technology required for fully autonomous operation. The robotaxis will be manufactured in a new Georgia factory still under construction. Rivian’s CEO RJ