"This agreement will position us on the right path to produce autonomous cars," said Head of Auto Alliances Uber Jeff Miller in an official statement.
Volvo said, technicians from both companies will develop a premium SUV that will be provided to the Uber. Previously Uber has been testing Volvo XC90 in Pittsburgh and they have established a strategic partnership with Volvo since August 2016. Uber also has a set of Ford Fusions equipped with autonomous technology.
Volvo itself plans to launch its first autonomous car by 2021. The car will also use the same vehicle base.
"The autonomous industry is now experiencing disruption due to technology and Volvo Cars wants to be an active participant in the disruption," said Volvo President and CEO Håkan Samuelsson. "Our goal is to be the supplier of choice for the world's top riders."
During developing autonomous car Uber has faced various problems. The car without a driver in Arizona suffered a severe accident in March this year.
In addition, they also launched an autonomous car service in San Francisco in December last year, but were expelled shortly thereafter for not registering their autonomous car fleet consisting of 16 cars.