Uber has contracted Rivian to supply robotaxi vehicles worth $1.25 billion, marking one of the largest commercial agreements in its autonomous vehicle program. The commitment covers thousands of units designed for Uber’s self-driving fleet operations across multiple urban markets.

This large-scale order underscores Uber’s strategy to own and operate its own autonomous ride-hailing network rather than rely solely on driver partners, leading to higher upfront capital expenditures but potential long-term cost savings. By locking in Rivian’s electric chassis and battery technology, Uber secures vehicle supply ahead of broader industry competition.

Tesla, with a $1.3 trillion market valuation and advanced full-self-driving software, remains Uber’s main competitor in autonomous mobility development. Both companies are vying for leadership in a market analysts forecast could reach $10 trillion globally, driving acceleration in EV production and software innovation.