Mobileye CEO Amnon Shashua speaks at a press conference on Mobileye’s driverless driving technology held at the Nasdaq market venue in New York, United States, on July 20, 2021. Reuters/Gina Moon
Gina Moon | Reuters
Autonomous driving technology supplier mobileye global announced Tuesday that it is launching its own robotaxi service and plans to deploy its first 100 vehicles in major U.S. cities in 2027.
The company said the initial launch will take place in stages throughout next year, after which it aims to expand its fleet to around 17,000 vehicles over the next five years.
Shares in the Jerusalem-based company rose about 6% following the announcement.
“We believe there is an opportunity for a new approach that builds on our deep autonomous driving expertise, strong industry partnerships, and proven capabilities across the mobility ecosystem,” Mobileye CEO Amnon Shashua said in a statement.
This move puts Mobileye in direct competition with some customers who use Mobileye Drive technology in their vehicles.
The company said this action does not change its commitment to supplying its customers.
Mobileye said in a release that it views the competition as a “complementary route to market,” adding that it “allows us to further demonstrate the capabilities of the Mobileye Drive platform at scale.”
The U.S. robotaxi services market is growing rapidly, with competitors offering services such as: of the alphabet waymo, Amazon’s Zoox, tesla There is more competition to expand into more cities and win new ride-hailing partnerships.
Waymo has a significant lead over its competitors and currently operates in 11 cities in the United States. The company is currently planning its first international expansions to London and Tokyo this year, and in June announced a new $29.99 monthly subscription tier for enthusiasts in high-demand cities.
Zoox announced a new partnership starting this summer through the Uber app in Las Vegas.
Elon Musk’s automaker Tesla lags behind its peers, with about 50 self-driving cars approved for driverless ride-hailing in Texas, about a tenth of Waymo’s fleet in the state.
CNBC’s Jennifer Elias and Laura Kolodny contributed to this report.
