UPDATED 21:59 EST / MAY 31 2018

EMERGING TECH

Waymo signs new deal with Fiat Chrysler as it talks to Uber about providing autonomous vehicles

Alphabet Inc.’s self-driving car unit Waymo keeps speeding ahead, inking a new supply deal with Fiat Chrysler Automobiles NV today and holding talks with Uber Technologies Inc. about supplying autonomous vehicles.

With the Fiat Chrysler deal, which comes on top of a previous supply deal for “thousands” of vehicles announced in January, Waymo placed an order for 62,000 Chrysler Pacifica minivans. It also signed a new partnership that may include the car manufacturer licensing Waymo’s technology and services for its own vehicles.

Described by The Verge as a “dramatic escalation in Waymo’s plan to bring driverless cars to the masses,” the deal may result in the general public being able to own a self-driving car that uses Waymo technology.

The vehicle order, which follows an order for 20,000 vehicles from Jaguar Land Rover Automotive Plc in March, comes ahead of Waymo’s launching the world’s first fully driverless commercial ride-hailing service later this year in Phoenix, Arizona.

Although the potential of Waymo technology being offered to a public via Fiat Chrysler vehicles is an exciting one for self-driving car enthusiasts, completely out of left field came news that Uber has been talking to the company about supply vehicles to its fleet.

The revelation came from Uber Chief Executive Officer Dara Khosrowshahi at the Code conference Thursday, “signaling a possible thaw in relations between the firms,” Reuters reported.

How far advanced the talks are isn’t clear. Khosrowshahi said Waymo is an “incredible technology provider” and having it on Uber’s network would be a good thing. “We’re having discussions with Waymo,” he added. “If something happens, great. If not, we can live with that, too.”

A deal between the two companies would be a monumental turnaround given their past dealings. Waymo sued Uber in February 2017, claiming that the ride-hailing company had stolen its technology. The suit itself was settled Feb. 9, with Uber agreeing to pay Waymo $245 million in equity for allegedly stealing trade secrets, giving it 0.34 percent of the company based on its private market value.

The talks may also be a sign that the company could be close to winding down its efforts to design its own tech. Despite improving financials, Uber’s self-driving testing program has generated ongoing negative press for the company, culminating in the death of a pedestrian in March that was later found to have been caused by a software issue.

With Khosrowshahi all but committing this week to a 2019 initial public offering, clearing the decks by winding back or even abandoning its self-driving car program and adopting Waymo vehicles would reduce Uber’s expenses while also borrowing the credibility of Waymo’s near-perfect safety record.

Photo: Waymo

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