Uber and Lucid Team Up with Nuro to Launch Robotaxi Alliance

Uber is investing $300 million in Lucid to launch 20,000 self-driving SUVs by 2032, starting in 2026. Lucid will use Nuro's self-driving technology. The deal marks a renewed focus on robotaxis, which has seen a lull following early investments by Tesla, Waymo, and Cruise. Uber's investment in Lucid sent the company's stock up 26% to $2.95, but it remains down 24% this year.

Uber Technologies Inc. has announced a significant investment in electric vehicle maker Lucid Group Inc. to deploy over 20,000 self-driving SUVs by 2032, starting in 2026. The ride-hailing company will invest $300 million in Lucid, with Lucid using Nuro's self-driving technology for the vehicles [1]. This deal underscores Uber's renewed focus on robotaxis following a lull in the market after early investments by Tesla, Waymo, and Cruise [2].

Under the agreement, Uber will purchase and operate Lucid Gravity SUVs equipped with Nuro's autonomous vehicle (AV) technology. The first vehicle is expected to be deployed in a major U.S. city by the end of 2025, with plans to scale up to 20,000 robotaxis over six years [3]. This investment is part of Uber's broader strategy to partner with and invest in firms specializing in AV technology, marking a shift away from in-house development [4].

The partnership also includes separate multi-hundred-million dollar investments in both Lucid and Nuro. The $300 million investment in Lucid will be used to upgrade its assembly line to integrate Nuro's hardware into the Gravity vehicles [2]. Lucid's stock soared 40% following the announcement, reaching $3.21 per share [2].

Uber's investment in Lucid comes as demand for driverless cars is expected to increase, driven by advancements in technology and regulatory changes. However, commercializing AV technology remains challenging due to high costs, tight regulations, and federal investigations [1]. Despite these challenges, companies like Amazon's Zoox and Tesla are continuing to test and expand their robotaxi services [1].

The Lucid-Nuro deal adds a notable customer for Lucid, which is working to popularize its Gravity SUV model. The company has been ramping up production and deliveries, estimating it will produce 20,000 vehicles in 2025 [2]. Prototype robotaxis developed by Lucid and Nuro are already operating autonomously on a closed circuit at Nuro's testing facility in Las Vegas [1].

Lucid interim CEO Marc Winterhoff stated that the partnership with Uber is a stepping stone for the company to expand its tech leadership beyond electric vehicles and into partnerships in other areas [2]. He noted that the deal is the first starting point in a six-year journey, with a lot more to come.

References:
[1] Reuters. (2025, July 17). Uber to deploy 20,000 Lucid SUVs with Nuro's AV tech. Retrieved from https://www.reuters.com/business/autos-transportation/uber-invest-300-million-ev-maker-lucid-part-robotaxi-deal-2025-07-17/
[2] Detroit News. (2025, July 17). Uber partnering with Lucid, Nuro to launch robotaxis in 2026. Retrieved from https://www.detroitnews.com/story/business/autos/2025/07/17/uber-partnering-with-lucid-nuro-to-launch-robotaxis-in-2026/85258940007/
[3] Yahoo Finance. (2025, July 17). Uber invests $300M in Lucid for robotaxi alliance. Retrieved from https://finance.yahoo.com/news/uber-invests-300m-lucid-robotaxi-203520412.html
[4] CNBC. (2025, July 17). Uber, Lucid, Nuro partner to deploy 20,000 robotaxis. Retrieved from https://www.cnbc.com/2025/07/17/uber-lucid-robotaxi-partnership-300-million-20000-nuro.html