Uber Technologies (UBER) is stepping up its driverless ambitions, this time with a bold bet on Lucid Motors (LCID) and self-driving startup Nuro.
The ride-hailing giant announced a new partnership to roll out more than 20,000 autonomous vehicles over the next six years.
Under the agreement, Uber will invest $300 million in Lucid, which will manufacture EVs equipped with Nuro’s self-driving tech specifically for Uber’s platform.
CEO Dara Khosrowshahi called the deal a major step toward building a fleet of robotaxis “purpose-built for the Uber platform.”
Nuro CEO Jiajun Zhu added that the collaboration shows “what’s possible when proven AV technology meets real-world scale.”
The first prototypes are already in testing at Nuro’s closed course facility in Las Vegas, according to Uber.
The move adds another layer to Uber’s broader autonomous strategy.
The company recently expanded its partnership with Alphabet’s Waymo, which is already running commercial rides in cities like Austin and Atlanta through the UberX, Comfort, and Comfort Electric ride options.
Morgan Stanley estimates Waymo could pull in $1.79 billion in annual revenue by 2029 and Uber wants a piece of that pie.
The Lucid/Nuro partnership gives Uber more control over the design and deployment of autonomous EVs, reinforcing its commitment to AVs and electrification as long-term growth drivers.
That doesn’t convince all analysts, as skeptics question whether those investments will ultimately improve margins.
Lucid rips, Uber slips
The announcement had a muted impact on Uber stock, which dropped 5% last week to close just under $91. But that dip came after a massive rally.
Uber is still up 43% year-to-date and notched a fresh all-time high earlier this month.
The broader bull case for Uber remains intact, backed by strong user growth and improving profitability.
Gross bookings are expected to rise up to 20% in Q2, with adjusted earnings potentially jumping 35%, according to the company.
Meanwhile, Lucid soared on the news.
The EV maker — with a market cap of less than 10% of Uber’s — reported $235 million in revenue last quarter and delivered 3,109 vehicles. It expects to produce 20,000 units in 2025.
Despite recent challenges, Lucid remains well-funded, with nearly $5.8 billion in liquidity at the end of Q1.
The Uber partnership could give it a much-needed edge and visibility in the autonomous vehicle space.
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