Uber acquires self-driving truck startup Otto

The firm recently acquired driverless-truck startup Otto which would indicate – just as their venture into local delivery via bike messenger, UberRUSH, did – that the San Francisco firm are looking to develop an entire network of transport solutions, autonomous or not. According to a Bloomberg estimate, the deal could be valued at about $680 million.

As reported by Bloomberg Businessweek, the Uber Pittsburgh fleet will consist of specially modified Volvo XC90 SUVs, outfitted with dozens of sensors that use cameras, lasers, radar, and Global Positioning System receivers, and will be supervised by humans in the driver’s seat as part of the trial. The timing is noteworthy as just yesterday, a U.S. District Court judge in California rejected the company’s proposal to settle a class-action lawsuit by current and former Uber drivers who claimed they should be classified as employees rather than independent contractors.

With the acquisition of Otto, Uber gets a fast infusion of self-driving expertise, including Otto co-founder Anthony Levandowski. The company, which has been testing sensor-equipped autonomous trucks (pictured above), said its mission is to improve highway safety and trucking efficiency. But its chief executive officer, Travis Kalanick, has said that without drivers, the cost of hailing a ride will be cheaper than owning a auto.

Taxi app Uber said on Thursday it would deploy driverless cars for its ride-sharing services in Pittsburgh this month, pushing the envelope for the use of self-driving technology.

While talk of new and exciting technology is interesting, safety is arguably the major concern for the general public and vulnerable road users. Kalanick cited statistics showing that some 90 percent of the 1 million people killed in collisions every year are caused by human error. It doesn’t appear that the companies will be collaborating on the autonomous driving technology itself.

Uber announced a $300 million deal for Volvo to provide SUVs to Uber for autonomous vehicle research.

At this point the cars that Uber users summon will have a highly trained engineer sat in the drivers seat with their fingertips on the wheel, ready to take over control of the vehicle should the auto experience a situation it’s not equipped to deal with.

John Simpson, Privacy Project director at the advocacy organization Consumer Watchdog, which has urged caution and strict regulation for self-driving vehicle technology, called Uber’s Pittsburgh tests an “outrageous PR stunt”.

Uber and Volvo were two of the founding members of a coalition unveiled in April to push for a unified USA legal code on self-driving cars – a group that also includes Google, auto maker Ford and Uber rival Lyft.

Although other companies including Google are testing self-driving cars on public roads, none offers rides to regular people.

The statement did not disclose the value of Otto’s purchase. Globally, traffic accidents are one of the leading causes of death.