Volvo Car Group announced today that it has agreed a $300 million alliance with Uber to develop self-driving cars.

volvo

The partnership will allow the Swedish-based carmaker, owned by China’s Geely, and ride-hailing service Uber to pool resources into initially developing the autonomous driving capabilities of its flagship XC90 SUV model. The investment will be shared roughly equally by the two companies.

Uber will purchase Volvos and then install its own driverless control system for the specific needs of its ride-hailing service.

Volvo will use the same vehicle for its own autonomous driving project, which is based on a plan that still envisages having a driver in the car.

The investment will go towards researching and developing both hardware, such as sensors used to detect traffic and obstacles, as well as software for the self driving cars.

The investment will go towards researching and developing both hardware, such as sensors used to detect traffic and obstacles, as well as software for the self driving cars.

“The alliance marks the beginning of what both companies view as a longer term industrial partnership,” said a Volvo press release. It doesn’t appear that the companies will be collaborating on the autonomous driving technology itself. Instead, Volvo will work on its own autonomous tech apart from Uber, though they will share the underlying vehicle platforms.

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Sangeeta Ghosh

Sangeeta is an engineering graduate and is passionate about painting and music. She is always blooming with new ideas and is a real go to person when you are searching for one. Exploring good dining places across the city is her favourite off-field indulgence. At KnowStartup, she is an integral part of the editorial team.

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