The acquisition of Otto, whose financial terms were not disclosed, comes in the midst of Uber’s $300 million collaboration with Sweden’s Volvo Car Group to develop driverless cars.
It also followed Uber’s announcement that it will launch an autonomous car service in the western Pennsylvania city of Pittsburgh this month.
“Together, we now have one of the strongest autonomous engineering groups in the world; self-driving trucks and cars that are already on the road thanks to Otto and Uber’s Advanced Technologies Center in Pittsburgh; the practical experience that comes from running ridesharing and delivery services in hundreds of cities; with the data and intelligence that comes from doing 1.2 billion miles on the road every month,” said Uber CEO Travis Kalanick.
Kalanick said Otto founder Anthony Levandowski will now lead Uber’s self-driving technology development program.
.Uber buys self-driving truck startup Otto; teams up with Volvo nkRGkyvhER
— EconomicTimes (@EconomicTimes) August 18, 2016
The 90-man Otto, which was formed in January this year, said the alliance aims to establish a “backbone of the rapidly-approaching self-driving freight system.”
“Together with Uber, we will create the future of commercial transportation: first, self-driving trucks that provide drivers unprecedented levels of safety; and second, a platform that matches truck drivers with the right load wherever they are,” Otto said on its website.
Uber buys autonomous truck startup Otto MotorAuthority (@motorauthority) August 19, 2016
Uber divulged only few details on its venture in Pittsburgh and Nils Hagen-Frederiksen of the Pennsylvania Public Utility Commission said they are waiting for information on the plan from the San Francisco-based firm.
Hagen-Frederiksen, the spokesperson for the commission that oversees Uber’s operations in the state, said they will carefully review the company’s plan as part of its commitment to public safety.
“The city of Pittsburgh has been fully supportive of Uber’s efforts to expand its program and advance innovation. Mayor (William) Peduto, a regular user of Uber, welcomes these advancements and looks forward to further collaboration with the company,” city spokesman Tim McNulty told AFP.
Pittsburgh is the home of robotics research leader Carnegie Mellon University.
On Thursday, Uber and Volvo announced their partnership on self-driving car development in a deal that will enable the latter to sell 100 cars to the ride-sharing company later this year.