Uber agreed to purchase up to 50,000 Rivian R2 robotaxis in a $1.25 billion contract finalized last week after over a year of discussions between the two CEOs. This represents one of Uber’s largest single fleet commitments and positions the company to scale its driverless vehicle network significantly.

Rivian’s in-house Autonomy Platform, combining custom-designed chips with proprietary self-driving software, will power the R2 robotaxis without a third-party technology provider. This vertical integration distinguishes the partnership from Uber’s other autonomous collaborations and underscores Rivian’s capability to deliver both hardware and software.

Rivian will invest billions of dollars into its autonomy development, funding enhancements that will delay its profitability targets into 2027. For Uber, the upfront $1.25 billion expenditure reflects a strategic bet on future driverless revenue streams and could reshape its cost structure for mobility services.