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Key Moments

  • Uber Technologies shares rose 2% in premarket trading after announcing a robotaxi partnership with Nvidia.
  • Robotaxi services will launch in Los Angeles and San Francisco in 2027 and expand to 28 cities globally by 2028.
  • The collaboration will use Nvidia’s DRIVE Hyperion platform and Alpamayo AI as part of Uber’s multi-partner autonomous strategy.

Uber Shares Rise on Nvidia Robotaxi Deal

Uber Technologies’ stock climbed 2% in premarket trading on Tuesday. The company announced a partnership with Nvidia to roll out autonomous robotaxis. The service will start in Los Angeles and San Francisco in 2027, using Nvidia’s self-driving software.

The initiative aims to expand quickly, reaching 28 cities worldwide by 2028. This marks a major step in Uber’s efforts to integrate autonomous technology into its ride-hailing business.

Technology Backbone: DRIVE Hyperion and Alpamayo

The robotaxis will use Nvidia’s DRIVE Hyperion platform along with Alpamayo, a reasoning-based AI model. This combination will handle complex urban driving scenarios and support advanced autonomous capabilities.

Key ComponentDescription
DRIVE HyperionNvidia’s platform powering hardware and software in the robotaxis.
AlpamayoA reasoning-based AI for navigating complex driving environments.
Initial CitiesLos Angeles, San Francisco (launch planned 2027).
Global Expansion28 cities worldwide by 2028.

Phased Deployment Toward Level 4 Autonomy

Uber will roll out the service in stages. First, data-collection vehicles will gather city-specific information. Next, operator-supervised robotaxis will operate in select areas. Eventually, Uber plans to transition to fully driverless Level 4 operations once systems are trained and validated.

Uber calls the Nvidia deal part of a “multi-player” autonomous ecosystem. Instead of relying solely on its own technology, Uber will enable multiple developers and automakers to offer robotaxis on its platform.

Competitive Landscape in Driverless Ride-Hailing

The partnership increases competition in autonomous ride-hailing. Alphabet’s Waymo currently leads with fully driverless services in Phoenix, San Francisco, and Los Angeles. Meanwhile, Tesla pursues a camera-based approach and plans its own robotaxi service.

Additional Uber Partnerships: Lucid and Nuro

Uber also works with Lucid Group and autonomous startup Nuro. Lucid vehicles will use Nuro’s self-driving tech as robotaxis on Uber’s platform. Lucid plans to commercialize a robotaxi based on its Gravity SUV this year.

Although developing autonomous systems is costly, companies see robotaxis as a potentially high-margin revenue source if successfully scaled.

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