Uber is moving forward with its luxury robotaxi service, teaming up with Lucid Motors, Nuro, and now, Hertz. Announced recently, this partnership aims to deliver a service by late 2026, initially operating in the San Francisco Bay Area and utilising Lucid’s Gravity SUVs equipped with Nuro’s self-driving technology.
Hertz’s role revolves around managing daily vehicle operations through a new affiliate called Oro Mobility, responsible for crucial tasks such as maintenance, charging, repairs, and cleaning. This venture into autonomous vehicle management comes as Hertz adapts to the shift from individual car ownership towards commercially operated fleets.
This isn’t Hertz’s first foray into innovative mobility solutions. After emerging from bankruptcy in 2020, the company made headlines in 2021 with its significant order of 100,000 electric vehicles (EVs) from Tesla, greatly enhancing its market image and contributing to Tesla’s soaring valuation. Following this, Hertz also planned to purchase 175,000 EVs from General Motors and an additional 65,000 from Polestar, although these agreements have not materialised fully. In early 2024, Hertz began selling off parts of its EV inventory, impacted by rising maintenance costs incurred through Uber drivers renting these vehicles, as well as Tesla’s price cuts that intensified competition in the EV market.
Establishing Oro Mobility aligns closely with Hertz’s expertise in fleet management, positioning the company to compete with peers like Avis, who are already providing similar services to firms like Waymo. The interest from robotaxi companies in leveraging third-party management indicates a potential growth area for Hertz.
In their recent announcement, Uber and Hertz also expressed interest in exploring further expansion in 2027. Uber, which has established partnerships with numerous autonomous vehicle companies worldwide, plans to order at least 35,000 robotaxi-capable vehicles from Lucid Motors, starting with an initial batch of 10,000 Gravity SUVs, followed by an additional order for 25,000 EVs from Lucid’s upcoming mid-sized platform. Notably, Uber has acquired over 11% of Lucid Motors as part of its broader investment strategy tied to these vehicle orders.
As these partnerships develop, the combination of expertise in fleet management from Hertz and the technological capabilities of Lucid Motors and Nuro places Uber’s robotaxi initiative on a promising trajectory within the evolving transport landscape.
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