Swedish automaker Volvo will supply up to 24,000 cars equipped with autonomous technology to Uber between 2019 and 2021 according to an agreement signed by the two companies, Reuters has reported.
As part of the non-exclusive agreement that the two giants have reached, Volvo will supply its Scalable Product Architecture (SPA) based vehicles to Uber, which will add its own autonomous-driving hardware.
Uber accepted combining Volvo's cars with its self-driving system after the ride-hailing giant’s autonomous driving unit was hit by an intellectual property lawsuit filed by Waymo and the departure of top talent.
Volvo’s XC90s, supplied to Uber in a smaller number under an agreement signed in August 2016, form the backbone of the company's autonomous-driving test fleet.
If Uber does buy up to 24,000 cars, it would be Volvo's largest order by far and the biggest sale in the autonomous vehicle industry.
With the deal in place, Uber will have a fleet large enough to start commercial autonomous ride sharing. However, it's unclear if that is the company's goal.
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