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The deal is a non-exclusive agreement that would run from 2019 to 2021, and would provide Uber with Volvo's flagship XC90 SUVs equipped with autonomous technology.

The nonbinding framework deal could offer San Francisco-based Uber a way to overcome setbacks at its autonomous driving division in Silicon Valley's race to flawless self-driving systems.

Uber and its investors have been itching for some good news and it appears that this partnership with Volvo is a great signs for its future.

It's all a sign of the times as auto makers seek a way to stay relevant and successful with the onslaught of new technology and mobility solutions, and the tie-up with Uber is a very sensible route for Volvo to pursue.

Uber partnerships chief Jeff Miller added: "This new agreement puts us on a path towards mass-produced self-driving vehicles at scale".

Volvo said it will supply XC90s with the core autonomous driving technologies that Uber needs to add its own self-driving features.

The deal between Volvo, owned by China's Zhejiang Geely Holding Group Co., and Uber is a framework agreement without financial terms.

Volvo and Uber expand tie-up in race to dominate self-driving cars

"The automotive industry is being disrupted by technology and Volvo Cars chooses to be an active part of that disruption", said Volvo CEO Håkan Samuelsson.

The Swedish automaker previously provided a small number of XC90 s for autonomous pilot programs Uber operated in several cities, including San Francisco and Phoenix.

Uber and Volvo are taking a major step toward putting driverless cars on the road.

The first taxis from the deal will be built in Volvo's factory in Sweden but the company plans to produce the vehicles in the U.S. China's Volvo is also building a new factory just outside Charleston, South Carolina.

Uber and competitors like Lyft ultimately hope to take the driver out of their vehicles since that is the single largest component in cost of a ride.

"We don't know exactly how an autonomous world will look".

Uber is making a significant investment into the driverless vehicles.

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