Swedish auto-maker Volvo Cars has agreed to supply 24,000 autonomous cars to ride-sharing company Uber.
Under the framework agreement, Volvo will provide Uber with its XC90 premium SUVs complete with autonomous driving technologies, from 2019 until 2021.
The automaker will supply vehicles that are developed on the company fully modular, in-house developed Scalable Product Architecture (SPA).
SPA is claimed to be an advanced car architecture and is being used by the company in the development of its 90 Series cars along with XC60 midsize SUV.
The non-exclusive agreement is the next logical step for the two companies which announced a partnership in last August.
Uber is expected to make the purchase at an estimated value of $1.4bn, as per a report by Financial Times. Volvo has already supplied Uber with 200 SUVs fitted with self-driving systems that are being tested in Pittsburgh, San Francisco and Tempe, Arizona.
Engineers from both the companies have worked together for the development of the XC90 SUVs which will be supplied to Uber.
While Volvo’s SUVs will come with some sensors and radars installed, Uber will install additional cameras, LiDAR system, a computer system to process the data and the self-driving software system.
Volvo Cars president and chief executive Håkan Samuelsson said: “The automotive industry is being disrupted by technology and Volvo Cars chooses to be an active part of that disruption.
“Our aim is to be the supplier of choice for autonomously driven (AD) ride-sharing service providers globally. Today’s agreement with Uber is a primary example of that strategic direction.”
This move from Uber is being seen as a counter for Google’s self-driving company Waymo. Waymo has partnered with Fiat Chrysler Automobiles (FCA) for 600 minivans, presently.
