Rivian and Uber Forge Robotaxi Partnership
Rivian Automotive has announced a $1.5 billion deal with Uber Technologies to create a fleet of 10,000 R2 SUVs for use as robotaxis, with the option to purchase an additional 40,000 vehicles by 2030. The partnership aims to diversify Rivian’s business model amid rising EV demand influenced by recent surges in oil prices due to turmoil in Iran.
The market capitalization of Rivian recently decreased to $18.5 billion, down from its peak of $100 billion, as the company seeks to capitalize on an open market for electric trucks and SUVs following cancellations of rival manufacturing plans. Meanwhile, Lucid Group reported a 122% revenue increase to $522.7 million in the fourth quarter of 2023, driven by its new Lucid Gravity SUV, but faces ongoing profitability challenges with operating losses rising to $1.06 billion.
Both companies are targeting the electric vehicle market’s growth potential; however, Rivian is seen as having a more promising path to profitability through expanding its software business, which contributes approximately 35% of its revenue.
