Otto’s speciality is in self-driving trucks.
Uber Technologies Inc. has disclosed that it has acquired Otto, a startup which specialises in self-driving trucks. It has also formed a $300 million alliance with the Volvo Car Group so as to develop self-driving cars.
This move underlines Uber’s ambitions to dive into the self-driving technology. If it succeeds, the cost of these vehicles could reduce substantially over time.
With the acquisition of Otto, Uber has positioned itself to enter the trucking industry, which as per available trade data, has an annual revenue of $726.4 billion in the United States alone.
The move comes in the wake of other carpooling firms forming their own alliances with large car manufacturer and reflects the growing trend of a convergence of software and hardware manufacturers to provide a vehicle the right reflex to adjust to various traffic situations.
“Partnership is crucial to our self-driving strategy because Uber has no experience making cars,” wrote Travis Kalanick, Uber’s CEO in a blogpost. “To do it well is incredibly hard, as I realized on my first visit to a car manufacturing plant several years ago.”
According to a source who is familiar with Uber’s plans, the company is set to launch a pilot program for its trusted customers by this month end which will see them summon their self-driving cars through their smartphones.
This will mark the first time when members of the general public will be able to use self-driving vehicles. However, a driver, who has been trained to handle autonomous cars, will be available behind the wheel, to step, as and when required.
As per a spokesman from the U.S. National Highway Traffic Safety Administration said it “continues to engage with all entities that are developing, testing and deploying automated technologies to ensure that they are advancing road safety.”
He went on to add, federal guidelines will soon be issued on the development and testing of “highly automated vehicles”.
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