Uber and Volvo have reached an agreement to power Uber's network with thousands of Volvo's self-driving cars.
In a recent press release, both brands announced its signing of a "framework agreement," where Uber will be sold tens of thousands of Volvo's seven-seater XC90 luxury SUV autonomous driving vehicles, starting in 2019.
Estimates call for roughly 24,000 vehicles purchased. At a near $45,000 MSRP, the total value exceeds $1 billion, but financial terms were not disclosed.
Both Uber and Volvo engineers have worked extensively to equip the model with safety and core autonomous driving technologies that will seamlessly integrate with Uber's self-driving technology.
"The automotive industry is being disrupted by technology, and Volvo Cars chooses to be an active part of that disruption," said Håkan Samuelsson, president, and chief executive of Volvo. "Our aim is to be the supplier of choice for AD ride-sharing service providers globally. Today's agreement with Uber is a primary example of that strategic direction."
Cut-throat competition has arisen amongst ride-sharing firms, with chief rival Lyft arguably one-upping Uber throughout. Recently, it announced a slate of partnerships with automakers and tech companies, including Autonomy and Waymo, to develop commercialization plans, research passenger experiences, and to add technology to its platform.
On the other hand, Uber has struggled regarding both market share and perception this year. Most recently, it faced a $1.8 million fine from the Colorado Public Utilities Commission for faulty background checks.
In 2017, it has also seen its U.S. market share, although formidable, drop to roughly 73 percent from the high 80s, relinquishing it to Lyft.