Uber has placed a $300 million bet with Volvo that it can eventually replace its tens of thousands of drivers with self-driving vehicles.
The companies told Bloomberg today they have signed a $300 million deal to create sport-utility vehicles that have the capacity to work as taxis that can drive themselves. In the early years, they will still have humans behind the wheel to cope with any surprises.
Uber will buy XC90 SUVs made by Volvo, reports Marketwatch.
Bloomberg reports that in a few weeks, a handful of the custom self-driving cars will be made available to Uber customers to order for free for local rides. By the end of the year, Volvo is expected to deliver 100.
Why Pittsburgh? Uber had already enlisted researchers from the city's Carnegie Mellon University to work on the concept.
Self-driving cars aren't a straightforward proposition. Several companies, such as Google, Tesla, and Ford, have been competing to create solutions to problems such as identifying objects to avoid.
Read the full story on Bloomberg.
