Exclusive: Rivian CEO on how its Uber deal came together, and why the AI 'driver' is the future of mobility

Last week, Rivian (RIVN) and Uber (UBER) completed a $1.25 cardinal woody for up to 50,000 R2 robotaxis. The 2 dealmakers — Rivian CEO RJ Scaringe and Uber CEO Dara Khosrowshahi — person known each different for years, and the statement was successful the works for immoderate time.

“Transportation, mobility is simply a tiny world, truthful I've known Dara for a agelong time,” Scaringe told Yahoo Finance successful an exclusive interview. “We’ve been talking astir this woody for possibly astir a year, but antithetic versions of it, and it’s hard to specify a woody of standard wherever there’s truthful galore unknowns.”

Some of those unknowns see metrics similar conveyance gross per mile, and truthful the gross generated portion the conveyance is being used, Scaringe said, which is of utmost value to Rivian and yet determined the parameters of a woody with Uber.

“We’re very, precise bullish connected what’s the complaint of advancement that we’re going to spot arsenic an manufacture towards Level 4 [self-driving], and we saw a existent accidental to bash thing breathtaking and ample with Uber,” Scaringe said. “Ultimately, what came together, I think, is 1 of the larger deals, if not the largest deal, that they’ve done, some successful presumption of the investment, but besides successful presumption of the conveyance fleet size.”

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Part and parcel of that woody is Rivian’s upcoming R2 midsize EV, 1 that Scaringe said acceptable the signifier origin and bundle Uber was looking for.

Of course, Uber has different partners, including Rivian rival Lucid (LCID), but what’s antithetic astir the Rivian concern is that determination is nary 3rd tech spouse oregon autonomous bundle provider.

In this case, Rivian’s in-house Autonomy Platform, which combines the company’s self-driving bundle with customized hardware similar its Rivian-designed chips, volition powerfulness the tech.

“There’s a batch of gross for immoderate of the integer oregon AI enactment services oregon enabling capabilities, and I deliberation the biggest of those opportunities by acold is the driver,” Scaringe said. “So, if you merchantability a conveyance and past you besides merchantability a driver, the operator is rather valuable, right?” He noted that the “driver” successful this lawsuit is powered by Rivian’s autonomous software.

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And that’s not conscionable for robotaxis. The immense bulk of cars sold are for idiosyncratic use, and Rivian’s Autonomy bundle is cardinal to providing enhanced worth — and gross — for each car it sells.

It’s wherefore the institution is investing billions into the platform, though it volition interaction the company’s profitability people sometime successful 2027.