Uber gains on deal with VW for autonomous vehicles

Investing.com -- Uber shares rose more than 4% on Wednesday after the company announced a long-term partnership with Volkswagen (ETR:VOWG_p) to deploy fully autonomous vehicles on its platform in the United States.

Under the agreement, Volkswagen will roll out its all-electric ID. Buzz AD vans on Uber’s ride-hailing platform starting in Los Angeles.

Testing is scheduled to begin later this year, with commercial service expected to launch in 2026. The deployment is expected to expand to multiple U.S. markets over the next decade.

“This collaboration marks a significant milestone in the advancement of autonomous mobility,” said Uber (NYSE: UBER) CEO Dara Khosrowshahi. “We can’t wait to launch in Los Angeles late next year.”

Volkswagen’s autonomous mobility unit, Volkswagen ADMT, will lead the initiative with MOIA, another Volkswagen brand, which will provide its solution for autonomous driving for the deployment on the Uber platform.

During early phases, the companies said human operators will remain in the vehicles to support testing and ensure safety.

“Volkswagen is not just a car manufacturer—we are shaping the future of mobility,” said Christian Senger, CEO of Volkswagen Autonomous Mobility. “Our collaboration with Uber accelerates that vision.”

Kjell Gruner, President and CEO of Volkswagen Group of America, added: “Our partnership with Uber is the next step for us to realize this vision and unleash the potential of autonomous mobility.”

“Through our work with Uber, we’ll introduce the ID. Buzz, the reimagined version of the iconic Microbus in all-electric form, to a growing number of riders in the years to come.”

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