Uber on Thursday announced a partnership to deploy more than 20,000 robotaxis over the next six years as demand for driverless cars kicks into high gear.
As part of the partnership, the ride-hailing company is teaming up with Lucid , the electric vehicle maker, and Nuro, an autonomous vehicle startup. Under the agreement, Uber will invest $300 million in Lucid. Nuro will develop the self-driving technology that Lucid will use to supply Uber with robotaxis over the course of the deal and receive a multi-hundred-million-dollar investment.
Lucid stock popped 30% Thursday. Uber shares were marginally higher.
The companies plan to launch the robotaxis in a major U.S. urban hub next year.
"We're thrilled to partner with Nuro and Lucid on this new robotaxi program, purpose-built just for the Uber platform, to safely bring the magic of autonomous driving to more people across the world," said Uber CEO Dara Khosrowshahi in a statement.
In an interview with CNBC, Lucid interim CEO Marc Winterhoff called the partnership an opportunity for the EV maker to compete in a "completely new" addressable market it has yet to penetrate.