Waabi Secures $1B Funding and Uber Deal for Robotaxis

Toronto-based Waabi announced Tuesday it raised $1 billion in new funding and struck a deal with Uber to launch self-driving robotaxis on the ride-hailing app. The company, known for work on autonomous trucks, will deploy 25,000 or more vehicles powered by its technology exclusively on Uber's platform. This marks Waabi's first big step beyond trucking into passenger transport.

Background

Waabi started in 2021 under Raquel Urtasun, who once led Uber's self-driving team as chief scientist. Uber sold that unit to Aurora Innovation in 2020, but kept ties with the field. Waabi built on that experience to create software called Waabi Driver, an AI system that handles driving for trucks on highways and city streets.

The company has run tests with trucks in Texas, always with a human driver upfront. It planned driverless highway runs by late 2025, but pushed that to early 2026. Waabi works with Volvo to make trucks ready from the factory with its sensors and tech built in. Shippers can buy these trucks directly, cutting out middle steps.

Uber has backed Waabi before through its freight arm. Now, Uber sets up Uber AV Labs to test vehicles and gather data for partners like Waabi, Waymo, and others. Uber stopped its own self-driving work years ago and now teams up with outside firms to add autonomous rides to its app.

Waabi collected data on passenger cars from day one, even as it focused on trucks. Urtasun has talked about using the same tech for robots later. This funding and deal speed up those plans.

Key Details

The money breaks down to a $750 million Series C round led by Khosla Ventures and G2 Venture Partners. Uber adds about $250 million more, tied to goals like building and rolling out the robotaxis. No exact dates or places for launch were given.

Waabi says its AI works the same for trucks and robotaxis, unlike rivals that build separate systems. This saves money and lets it grow fast in both areas. The company calls it a 'generalizable' setup that could fit drones or warehouse machines too.

Trucking Progress

Waabi's trucks handle long hauls and city roads without changes to the software. Pilots in Texas show promise, and Volvo trucks are in final checks. Demand is high because shippers get full trucks they own outright.

Robotaxi Partnership

Uber gets first dibs on Waabi's robotaxis worldwide. The deal aims for 25,000 vehicles over time. Waabi will outfit cars much like its trucks, with tech from the start. Uber runs similar plans with Nuro and Lucid for 20,000 units over six years.

"Our incredible core technology really enables, for the first time, a single solution that can do multiple verticals, and they can do them at scale," Urtasun said. "It’s not about two programs, two stacks."

Urtasun called the Uber tie-up a 'massive partnership' that pushes the industry forward. Uber CEO Dara Khosrowshahi said it marks a key step for Waabi and self-driving tech overall.

What This Means

Self-driving trucks could ease driver shortages and cut shipping costs by running non-stop. Robotaxis promise cheaper, safer rides without human error, which causes most crashes. Waabi's one-system approach might beat companies like Waymo, which dropped trucking after robotaxi focus.

Uber protects its lead in ride-hailing by adding autonomous options fast. It now works with over 20 firms to mix self-driving cars into regular service. This deal with Waabi adds scale, especially with trucking links already in place.

For Waabi, the cash funds truck launches and robotaxi builds. It claims the largest funding ever for a Canadian tech firm. Success here could open doors to more uses, like home robots.

Challenges remain. Regulators must approve driverless runs in new spots. Trucks need full safety sign-off. Robotaxi details, like car makers or first cities, stay under wraps. Milestones for Uber's extra money are not public.

"Self-driving is happening," Urtasun said. "The technology is ready now. Over the next few years we will see deployment truly at scale, enabling safer, more efficient, and sustainable transportation."

Waabi bets its AI scales where others falter. Uber sees it as a way to stay ahead as Tesla and others push robotaxis. The next quarters will show if trucks roll out first, followed by rides on the app.

This shift puts Waabi at the center of transport changes. Trucks move goods around the clock. Robotaxis serve riders in busy areas. One tech stack handles both, aiming for broad reach.