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Customer LoginsDaimler to partner with Uber on self-driving vehicle fleet
Daimler and Uber have issued a joint statement announcing their intention to partner on a self-driving vehicle fleet, without specifying timing or vehicles. Daimler is the second premium brand with which Uber is working to develop a self-driving fleet.
IHS Markit Perspective
- Significance:Daimler and Uber issued a joint statement on 31 January 2017 on an agreement to work together on supplying and operating self-driving vehicles.
- Implications:While the announcement did not cover timing, Daimler has announced its EQ brand of EVs will first arrive in 2019 and the self-driving vehicle is likely to come from this lineup.
- Outlook:For Uber, the agreement gives access to another source for its self-driving fleet. For Mercedes-Benz, the deal opens access to Uber customers and provides an outlet for its products, which could help position it as a leader in the space. This is Uber's second collaboration with a premium brand on self-driving cars, although the terms of its relationship with Volvo are notably different.
Daimler AG and Uber plan to incorporate Mercedes-Benz self-driving cars into Uber fleets, according to a joint statement. No timeline was confirmed nor was any light shed on potential financial considerations. Daimler and Uber will co-operate on the supply and operation of self-driving vehicles. "This agreement is the next stop into the future of shared and autonomous driving," said the press release. "Each company will benefit from the other's industry-leading capabilities in research and development of autonomous driving and network operations."
Uber CEO Travis Kalanick has written on an Uber company blog that, "Auto manufacturers like Daimler are crucial to our strategy because Uber has no experience making cars - and, in fact, making cars is really hard …. We want to partner with the best auto manufacturers in the world." His official statement read, "Self-driving technology holds the promise of creating cities that are safer, cleaner, and more accessible. But we can't get to that future alone. That's why we're opening up the Uber platform to auto manufacturers like Daimler. By combining Daimler's and Uber's technological strengths, more people can get access to reliable transportation at the push of a button."
In the formal announcement, Daimler CEO Deiter Zetsche said, "Daimler aims to be a leader in autonomous driving - one of the most fascinating aspects of reinventing mobility. Mobility service providers offer an ideal platform for autonomous driving technology and Uber is a leading mobility platform company. The real revolution in future mobility lies in intelligently linking the four major trends we call CASE: connectivity, autonomous driving, sharing, and electric mobility."
The agreement extends only to supply and operation, according to several media reports, excluding shared participation in research and development for upcoming Mercedes-Benz self-driving cars, despite ongoing development at both companies in the technology. Uber will neither own nor operate the Mercedes-Benz vehicles. Both Daimler and Uber are also working towards applying self-driving technology to commercial vehicles and tractor-trailer trucks. Uber purchased Otto in 2016 and Daimler has demonstrated the technology on a Freightliner (see United States: 6 May 2015: Autonomous Freightliner Inspiration Truck introduced, granted licence to operate on public roads), among other development demonstrations.
Outlook and implications
For Uber, the accord opens another route to offering its customers options in a self-driving fleet. For Mercedes-Benz, the deal gives access to a ride-hailing platform and to Uber customers for its pending self-driving fleet. This is Uber's second collaboration with a premium brand on self-driving cars, although the Daimler agreement is structured quite differently from its arrangement with Volvo. In the ride-hailing and future self-driving space, Uber, Google, and Lyft are focusing on strategies in which they provide the ride-hailing platform or the self-driving technology, with automakers providing the vehicles. More tie-ups are likely between automakers and technology and ride-hailing companies.
Automakers greatly outnumber global-scale ride-hailing companies, which are therefore likely to build relationships with several manufacturers.
While not stating where or when the vehicles would first be deployed, the announcement indicated it would be a worldwide effort and that Uber currently operates in 74 countries. The vehicles will likely be from Daimler's upcoming Mercedes-Benz EQ brand, from which the first vehicle is expected in 2019. Daimler has been developing autonomous-driving capability and has largely been leading the industry in advanced driver-assist systems. But Uber is also aggressively working on its own autonomous-driving capability. Daimler will use Uber's global ridesharing network to introduce its own self-driving cars. While these vehicles will be on Uber's network, they will be owned and operated by Daimler.
Daimler is the first but will probably not be the last organisation to take this direction. The announcement noted the experience of Uber and Daimler in self-driving vehicle research in both passenger cars and commercial vehicles. Knowledge may ultimately be shared between them. Another example of a ride-hailing and automaker tie-up is the relationship between GM and Lyft, currently expressed in traditional vehicles. Lyft is expected to purchase self-driving Chevrolet Bolt EVs from GM after the two deploy Bolt EVs with self-driving technology in 2017.
Uber's decision to partner for its future self-driving fleet with two premium makes is interesting. As GM and Ford are more focused on creating their own mobility arms, while Toyota and Nissan are both more cautious about deploying self-driving cars, this could reflect OEM strategies as much as Uber's objectives. But this approach could enable Uber to offer a premium self-driving ride-sharing service as well as a standard service, similar to its current Uber X and Uber Black categories.
It is currently unclear if the Uber app will tell users when they are accessing a Mercedes-Benz vehicle from an Uber-operated fleet. The benefit to Daimler is access to the vast pool of Uber users, who will expect the same app experience, regardless of vehicle owner, just as they do today. It may be largely irrelevant to the consumer whether Daimler or Uber owns the vehicle. Rating the driver, a key part of the current user experience and Uber community, would no longer occur in a self-driving scenario but rating a vehicle might. Automakers will wrestle with this issue of branding and how to maintain a direct relationship with the vehicle user as none is looking to sell a commodity.
Uber began working with Volvo and acquired Otto in 2016. The relationship with Volvo has resulted in Uber Volvo XC90 self-driving SUV pilots in Pittsburgh in Pennsylvania and in Phoenix in Arizona, both in the United States. Uber's rental-fleet pilot agreement with GM's Maven, although not involving self-driving cars, could also open the door for a relationship in self-driving cars.
About this article
The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.