Uber (NYSE: UBER) plans to invest up to $1.25 billion in electric vehicle manufacturer Rivian (NASDAQ: RIVN) by 2031, contingent on Rivian achieving specific conditions and milestones. The joint venture between the two companies is expected to deploy 10,000 fully autonomous R2 robotaxis in its first phase, with an initial launch planned for San Francisco and Miami in 2028, aiming to expand into 25 additional cities by 2031. Furthermore, the partnership includes an option for both parties to negotiate the procurement of up to 40,000 additional R2 models starting in 2030. Uber CEO Dara Khosrowshahi emphasized that Rivian's vertically integrated approach to vehicles, computing platforms, and software stacks is its key value proposition. Analysts suggest that Rivian's R2 model will not only boost sales but also generate high-margin recurring revenue from licensing its autonomous driving software, which could be a driver for its stock price appreciation.