Uber paused its self-driving program in 2018 after a fatal crash involving one of its autonomous vehicles in Arizona.
The incident forced the company to rethink its strategy, shifting from in-house development to partnerships with specialized firms. Today, Uber is betting heavily on Nuro, a startup founded in 2016 by former Google engineers. The company has invested $500 million in Nuro, part of a broader effort to build out robotaxi services across the U.S.
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The investment came in stages. Uber initially joined a $203 million funding round for Nuro in late 2025, valuing the startup at $6 billion. Since then, Nuro has made progress on key milestones, including testing vehicles without safety drivers and planning to carry passengers. Uber’s additional funding depends on Nuro meeting future targets, such as expanding its fleet in 2027.
Vehicles in Nuro’s robotaxi fleet will be modified versions of the Lucid Gravity SUV. They use Nuro’s Level 4 autonomous system, powered by Nvidia’s Drive AGX Thor computer. This collaboration with Lucid is part of a larger deal, with Uber committing $500 million to the electric vehicle maker. The partnership aims to deploy robotaxis later this year, according to internal documents.
Uber is not relying on a single partner. The company also plans to invest up to $1.25 billion in Rivian by 2031. This includes building a robotaxi fleet based on Rivian’s new R2 electric SUV. The project could eventually involve 50,000 vehicles, with the first 10,000 deployed by 2028. These efforts reflect Uber’s long-term bet on autonomous technology, even after the 2018 setback.
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The 2018 crash marked a turning point. Uber’s initial push into self-driving cars ended abruptly, but the company has since adapted. By focusing on partnerships rather than in-house development, Uber aims to avoid repeating past mistakes. Nuro, Lucid, and Rivian are now central to its vision for the future of transportation.
Industry experts note that Uber’s approach contrasts with its early efforts. The company’s shift highlights the challenges of developing autonomous systems independently. By outsourcing key components, Uber reduces risk while accelerating deployment. This strategy could shape the next phase of robotaxi expansion in the U.S.
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The Lucid-Nuro partnership is expected to begin operations later this year. If successful, it could serve as a model for other cities. However, challenges remain, including public trust and regulatory hurdles. Uber’s investment signals confidence in the technology, but real-world adoption will depend on overcoming these obstacles.
Rivian’s involvement adds another layer to Uber’s plans. The R2 SUV is designed for both consumer and commercial use, making it a versatile platform for robotaxis. With 50,000 vehicles projected over a decade, the scale of the project shows Uber’s commitment to the market. Yet, the timeline for full deployment remains uncertain, with 2028 as the earliest target for the first phase.