Uber invests $300 million in Lucid to launch 20,000 robo-taxis

Uber has announced a new six-year deal to deploy more than 20,000 robo-taxis in collaboration with electric car manufacturer Lucid and autonomous vehicle startup Nuro.

As part of the deal, Uber will invest $300 million in Lucid. Nuro will provide Level 4 autonomous driving software that Lucid will use in its cars for Uber.

The first robo-taxis are expected to appear in a major US city next year. The deal will give Lucid access to a new market it has not previously served. Meanwhile, Lucid shares rose 36% on the news.

Nuro, backed by Google and SoftBank, is developing self-driving technology that can operate without human intervention in normal traffic conditions. The project is a continuation of Uber’s previous partnership with Waymo (a unit of Alphabet), which already operates in Atlanta and Austin.

With a range of up to 725 km, the Lucid Gravity should help reduce costs, shorten charging times, and make the service more accessible. Lucid is also considering adding other future models to the Uber program.

Nuro says the deal is a "roadmap" for a scalable and commercially viable robo-taxi program. Initial testing is already underway at Nuro's proving ground in Las Vegas. In April, Nuro raised $106 million from investors including Fidelity, Greylock and Tiger Global.

Uber also recently partnered with China's Baidu to deploy thousands of autonomous cars around the world. Baidu's robo-taxis, branded Apollo Go, will be available through the Uber app in various countries, including mainland China, Asia, the Middle East and other regions.