Uber Has Decided To Invest Up To $375 Million For Google Inc. (NASDAQ:GOOG)’s GX3200 Sedans
According to TechCrunch, Uber, the local transportation and delivery giant has announced its largest bet on autonomous vehicles saying that it would buy 2,500 driverless cars from Google Inc (NASDAQ:GOOG) with its second-quarter earnings announcement. Furthermore, both the companies have consented to a deal in which Uber would share data from its local transportation services with Google, which would be used to enhance its own self-ruling car-routing algorithms.
Uber has decided to invest up to $375 million for Google’s GX3200 sedans, the company’s third generation of autonomous driving cars, but it has to be approved for commercial use in U.S first. The deal is marked with the greatest sole capital investment that Uber has made to date, and from Google side it is also first enterprise deal that it has done for its new line of driverless vehicles. Meanwhile, shares of Google are continued to soar.
Five years ago, Google announced that it would start manufacturing its own driverless cars and after just two and half years those vehicles have entered the market. The company is on its third car model already, after the first-generation GX1000 two-seat sedan model and its follower GX2100 five-seat family commuter.
Most recently, Google has produced a fully electric, fully autonomous vehicle, The GX3200, which was presented earlier this year at the Detroit Auto Show. The car has four comfortable seats with a room for up to three suitcases in its rear storage compartment. Like earlier Google models, the car acts as its own wireless base station so through Google’s WirelessGig service; travelers can connect to the Internet. The GX3200 can travel up to 750 miles on a single charge, or about 48 hours on standby mode, due to its less weight and the most modern in fuel cell technology. This latest Google’s car is meant strictly for non-personal use, unlike the first-generation GX1000 or the follow-up GX2100. With it, Google is targeting the local transportation providers’ enterprise market like Uber, in addition to different municipalities like Chicago and New York.
For Uber, the company is expected to launch its first set of driverless cars on the road by the end of the year, presenting a new service called uberAUTO using those sedans in one or two of its markets at first. Uber said that it could make the service available in up to 10 markets by the end of next year, depending on its reception there. A part from the deal, the companies will work jointly to install the latest Uber logistics software directly into the sedan, and Uber will share some of its traffic and routing data back to Google.Google Inc (NASDAQ:GOOG) shares moved up 0.21% to $872.00 in premarket on Monday.