Waabi Partners with Uber to Develop Robotaxi Technology

Waabi, the Toronto-based startup specializing in autonomous trucking, is now setting its sights on the robotaxi market, and it’s teaming up with Uber to make it happen. Founded in 2021 by Raquel Urtasun, who previously led Uber’s Advanced Technologies Group, Waabi aims to take a more “AI-centric approach” to self-driving vehicles. Initially focused on trucking, the company has been using its proprietary software to automate commercial delivery routes in Texas. However, as the challenges of self-driving trucks have become more apparent, Waabi is pivoting to autonomous rideshare vehicles to showcase its “physical AI” capabilities.

To support this shift, Waabi has secured $1 billion in funding, including $750 million from a highly successful Series C round led by Khosla Ventures and G2 Venture Partners, along with additional investment from Uber specifically for robotaxi development. As part of this collaboration, Waabi plans to deploy at least 25,000 robotaxis powered by its technology on Uber’s platform, with Urtasun noting that this figure is just the starting point.

“This is a massive partnership,” she stated. “It really elevates the scale of the robotaxi market.”

This is a significant claim from a startup that has yet to validate its self-driving trucks for commercial use, let alone launch a robotaxi. Urtasun did not provide specifics on the deployment timeline, target markets, or the vehicle platform for the robotaxis. However, she asserted that the technology used for trucking can also be adapted for robotaxis, as both require vehicles to navigate to specific locations for pickups and drop-offs. She believes that many operational behaviors necessary for robotaxis are already integrated into Waabi’s existing system.

Waabi isn’t the first autonomous vehicle operator to shift focus to robotaxis, especially with the rising interest in Waymo’s early achievements, prompting investors to funnel more resources into startups with robotaxi plans.

While it was once thought that driverless trucks would lead the way in mass adoption before robotaxis and personal autonomous vehicles, the reality has proven more complex. Self-driving truck operators have faced significant technological and regulatory challenges that have delayed their public rollout. Some companies, like Embark Trucks, TuSimple, and Locomation, have shut down, while others have scaled back their plans as timelines have extended and funding has dwindled.

Urtasun, however, is confident that trucking is not insurmountable. She explains that Waabi’s trucking technology is already highly capable, but the company opted to hold off on fully driverless operations on public roads until the platform is completely validated. Unlike competitors that have implemented retrofit systems, Waabi chose to wait for a purpose-built, validated platform in collaboration with Volvo.

That said, she acknowledges that robotaxis present new challenges, including the risks associated with carrying passengers and the increased liability that comes with it. While she didn’t disclose specific details about Waabi’s partnership with Uber, such as fleet ownership, she emphasized that Waabi sees itself primarily as a technology provider rather than a fleet owner or manager.

Uber is likely to take the lead on those aspects of the robotaxi business, having established partnerships with numerous AV operators worldwide. With Urtasun’s background as a former tech executive at Uber, she has valuable insights into the expectations of the ride-hailing giant.

Nonetheless, Waabi will encounter various challenges, including regulatory hurdles, supplier issues, and potential complications from Uber itself. Uber had previously invested heavily in developing its own self-driving cars, but that initiative ended in controversy, including allegations of trade secret theft and a tragic incident in 2018 that resulted in a pedestrian fatality. While the new funding will bolster Waabi in the short term, the real test will come when its robotaxis hit the streets and face the complexities of urban environments.