In the News

Global Joint Ventures - Uber Partners with Volvo

Jim Riley

25th August 2016

A great example here of the use of a joint venture. The motivation for this one - between Uber and Volvo - the race to develop driverless cars.

As the Guardian reports here, Volvo Car Group and ride-sharing service Uber have entered into a $300 million (50:50) joint venture to develop autonomous driving vehicles. It is just the latest collaboration between a traditional carmaker and a technology business to accelerate the development of self-driving technology.

The Volvo-Uber joint venture allows both businesses to combine their resources with the aim of capitalising on the strengths of each other.

Volvo will provide XC90 SUVs to Uber, which in turn will install its autonomous driving system that Uber is developing for use in its ride-sharing service. Volvo will then use the vehicles with Uber’s self-driving tech for its own strategic purpose.

The partnership covers hardware and software developments aimed at addressing important issues surrounding autonomous driving, particularly safety and security.

The short video below considers how this partnership might work out.

CNNMoney - Your next Uber could be a self-driving car

Jim Riley

Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.

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