Uber has chosen San Francisco as the launch site for its long-anticipated robotaxi service, developed in partnership with electric vehicle maker Lucid Motors and autonomous driving company Nuro.
The announcement marks the first major milestone in a deal that aims to roll out 20,000 self-driving vehicles across the United States over the next six years — a move seen as one of Uber’s most ambitious steps back into autonomous mobility since winding down its own self-driving division in 2020.
The companies confirmed that on-road testing has already begun following the delivery of the first Lucid Gravity SUV prototypes, each retrofitted with Nuro’s latest self-driving hardware and software stack. These vehicles will form the foundation of Uber’s next-generation robotaxi fleet.
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However, before commercial operations begin, the companies will need to secure the necessary driverless operational permits from the California Department of Motor Vehicles (DMV) and ride-hailing authorization from the California Public Utilities Commission (CPUC) — two key regulatory hurdles that stand between testing and passenger deployment.
In a joint statement, Uber, Lucid, and Nuro said they have been in “regular communication with policymakers and regulators at every level” to ensure compliance and transparency throughout the testing process.
Uber’s Chief Product Officer, Sachin Kansal, described the city’s choice as both symbolic and strategic.
“The Bay Area has long been the birthplace of transformative technology, and it’s only fitting that Uber’s next-generation robotaxi program with Lucid and Nuro will begin here – launching to the public next year,” Kansal said.
Prototype Fleet and Testing Phase
Lucid confirmed that it has delivered several engineering prototypes of its all-electric Gravity SUV to Nuro, which has since equipped them with a complete suite of autonomous technologies — including lidar, radar, cameras, and redundant safety systems designed for driverless operation. The companies plan to expand this phase rapidly, targeting “over 100 robotaxis” in their engineering fleet over the coming months.
According to the companies, Nuro will lead all validation and testing activities, which include advanced simulations, closed-course trials, and controlled on-road testing with human safety drivers still behind the wheel. The goal is to refine the vehicles’ navigation, obstacle detection, and passenger handling systems before removing human oversight.
California remains one of the most competitive markets for autonomous mobility, but it also has the most stringent regulatory framework. Uber and its partners must obtain two separate permits before launching commercially — a driverless testing permit from the DMV and a drivered or driverless deployment permit from the CPUC to carry paying passengers.
The choice of San Francisco brings Uber into direct competition with Waymo, the Alphabet-owned company that has become a dominant force in the local robotaxi market. Waymo removed its waitlist in 2024, opening its service to the general public and quickly capturing a significant share of the city’s autonomous ride-hailing demand.
An analysis of credit card transaction data from December 2024 found that Waymo’s market share in San Francisco had reached parity with Lyft’s, though only within its approved operating zones. That data underscores the rising consumer adoption of driverless services — and the challenge Uber faces in reclaiming a portion of the market it once sought to dominate.
The new collaboration effectively signals Uber’s re-entry into the autonomous vehicle race, years after selling off its self-driving research unit, Advanced Technologies Group (ATG), to Aurora Innovation in 2020. By partnering with Lucid and Nuro — companies with established strengths in electric vehicle manufacturing and robotic delivery — Uber is betting on a hardware-software partnership model rather than in-house development.
The fleet will be owned either by Uber directly or by third-party fleet management partners, with Nuro providing the self-driving systems and Lucid supplying the electric SUVs.
Uber’s decision to return to self-driving is believed to align with its long-term goal of reducing driver-related operating costs while expanding mobility access in dense urban areas. Pending regulatory approval, the San Francisco rollout could serve as a blueprint for deployment in other major U.S. cities, potentially beginning with Los Angeles, Miami, and Dallas, which have been under consideration for future expansion.
Cooperation and Competition with Waymo
While Uber prepares to go head-to-head with Waymo in San Francisco, the two companies are simultaneously collaborating in other cities. In Austin, Atlanta, and Phoenix, Waymo’s driverless vehicles are already available through the Uber app, allowing users to hail a Waymo robotaxi just as they would a traditional ride.
But that partnership, born out of a reconciliation between two former rivals, could face new tensions as Uber launches its own autonomous service.