Uber Technologies Inc (NASDAQ: UBER) will soon to be offering customers in select cities the option to test out self-driving vehicles for their trips.
Announced on Wednesday, the ride-share giant is teaming with Avride, which once upon a time served as the self-driving unit for Russian based Yandex.
Avride’s self-driving robots will begin delivering Uber Eats orders in Austin, Texas, as part of a multi-year deal. Later this year, the robots will expand to handle delivery orders in Dallas and Jersey City, New Jersey.
In 2025, Uber plans to offer autonomous driving for ride requests in Dallas. The service will be available only for “qualifying orders” on Uber or Uber Eats, although the company hasn’t specified the qualifications.
“Autonomous mobility and delivery hold a ton of promise for consumers and communities. We’re excited to partner with Avride to bring their technology to more people in more places, as they continue to scale,” said Dara Khosrowshahi, CEO of Uber.
Before spinning out as a new business, Yandex secured a similar deal in 2021, deploying its self-driving robots to make Grubhub deliveries on US college campuses. That same year, Yandex’s autonomous vehicles (AV) logged 6 million miles under “challenging conditions,” primarily around Moscow. Uber had been exploring self-driving vehicles through its own department, but sold the unit to Aurora, an autonomous vehicle company, in December 2020.
This partnership comes at a time when the race to dominate the AV market is intensifying.
For Uber, teaming up with Avride signifies a move beyond its previous partnerships, like those with Waymo and others, showcasing Uber’s strategy to become a central hub for various autonomous technology providers.
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Uber can lower operational costs using Avride’s tech
For Avride, this partnership provides a robust platform to deploy its technology in new markets, especially after severing ties with its Russian origins due to geopolitical tensions. The collaboration not only validates Avride’s technology on a global stage but also aids in its expansion in the U.S. market.
By integrating Avride’s technology, Uber can lower operational costs, reduce reliance on human drivers, and address regulatory and safety concerns tied to human-operated services.
Users of Uber and Uber Eats may soon notice changes in how their rides or deliveries arrive, with more robotic and AV in use. This shift could alter expectations regarding service speed, cost, and interaction.
The partnership will also face regulatory and safety challenges as it navigates the complex landscape of regulations and public acceptance. Early adoption in cities like Austin will likely serve as a test for broader regulatory approval. This move could give Uber a competitive edge in the evolving mobility services market, where competitors are also pushing to integrate autonomous technology.
However, the reception of the new merger and its options remains to be seen.
Autonomous vehicles have received a mixed reception as they have emerged in various regions worldwide, driven by a blend of excitement and skepticism.
Proponents of the technology highlight its potential to revolutionize transportation, reduce traffic accidents, and cut down on emissions. They argue that AVs can create safer roads by eliminating human error, which is responsible for most traffic accidents. In cities like San Francisco and Phoenix, early adoption of self-driving cars for ride-hailing services has been met with enthusiasm, where the novelty and convenience have sparked public interest.
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Autonomous vehicles are not without their detractors
However, the arrival of autonomous vehicles has also sparked significant concerns, leading to strict regulations or outright bans in some areas. In British Columbia, for instance, AVs are all but banned.
Provincial officials cite safety concerns and regulatory uncertainties as key reasons for their cautious approach. The province has yet to establish comprehensive rules that would allow widespread testing or deployment of AVs. This stance reflects the broader global hesitation, with critics pointing out that the technology is not yet mature enough to handle complex driving scenarios like unpredictable weather, road conditions, or interactions with human drivers and pedestrians.
Public acceptance remains a major hurdle for autonomous vehicles, as incidents involving AVs have fuelled anxiety over their safety. High-profile accidents, including fatalities caused by malfunctions or misjudgments in AV systems, have added to the apprehension.
joseph@mugglehead.com
