Waabi, a Toronto-based autonomous driving startup, is expanding beyond its established presence in freight logistics by entering the robotaxi sector with substantial new backing. The company, led by CEO Raquel Urtasun, has recently closed a $750 million Series C funding round, which was oversubscribed, and secured an additional $250 million from Uber in a milestone-based agreement. These investments position Waabi to introduce a significant fleet of self-driving passenger vehicles, aiming to address the demands of urban transportation. Waabi has signaled its intention to leverage its proven logistics and AI technology into passenger mobility, a sector with mounting competition and regulatory scrutiny. The scale of this funding reflects increasing confidence from investors in the readiness of autonomous vehicles, and represents one of the largest fundraising efforts in the Canadian tech landscape.
Waabi’s journey contrasts with earlier industry efforts that faced roadblocks, including Uber’s own autonomous vehicle program which it sold to Aurora Innovation in 2020. When comparing recent developments, Waabi has shown a more measured timeline, particularly for the deployment of fully driverless trucks, now targeting 2026 rather than the previously stated 2025. The company’s gradual progression correlates with the broader industry’s trend to extend pilot phases following incidents and regulatory caution. Competitors like Waymo and WeRide, already integrated into Uber’s platform, provide a roadmap for Waabi’s robotic taxi ambitions, but those rivals entered the ride-hailing market somewhat earlier, suggesting Waabi’s strategy is to focus on technical maturity and strong partnerships.
How Is Waabi Allocating Its New Funding?
The recent funding enables Waabi to expand its core technology, known as the Physical AI Platform, beyond freight to accommodate urban passenger transport. With high-profile investors such as Khosla Ventures, G2 Venture Partners, the venture arms of Nvidia, Volvo, and Porsche participating, Waabi aims to scale its platform for both commercial freight use and the urban robotaxi market. This funding not only supports research and software development, but also prepares Waabi for large-scale deployment, including the planned rollout of at least 25,000 autonomous passenger cars in collaboration with Uber. The company remains discreet about specific deployment locations and manufacturing partnerships at this stage.
Why Is Uber Partnering With Waabi for Robotaxis?
Uber has shifted towards partnerships with third-party autonomous technology firms, following the divestment of its in-house self-driving project. By integrating Waabi’s technology, Uber intends to expand its offerings in autonomous mobility within its ride-hailing platform alongside ongoing collaborations with companies like Waymo and WeRide. According to Uber’s CEO Dara Khosrowshahi,
“Waabi’s expanded focus on robotaxis marks an important milestone for their team and the [autonomous driving] industry more broadly.”
The partnership will involve milestone-based funding from Uber as Waabi achieves key deployment objectives. The alliance supports Uber’s broader initiative, which includes the recent launch of Uber AV Lab, a data-focused team to support autonomous industry partners.
What Sets Waabi’s Technology Apart in Ride-Hailing?
Waabi’s Physical AI Platform is designed to operate across various vehicle types and environmental conditions, aiming for adaptive utility in both logistics and passenger settings. Founder Raquel Urtasun emphasized the versatility of their system, which attracted attention from industry investors and decacorn partners like Uber. Urtasun stated,
“Our current self-driving capabilities across highways and generalized surface streets have unlocked a new direct-to-customer model that, for the first time, solves the pain points of the industry.”
Waabi’s previous successes in autonomous freight—including collaborations with Uber Freight in Texas and partnerships with Volvo for long-haul trucking—have set the stage for its ambitions in the urban robotaxi space.
Waabi’s entry into robotaxis underlines the growing interest in blending logistics and urban mobility through shared technology. As regulatory, technological, and operational challenges persist, Waabi’s partnership-driven approach and extensive funding may provide resilience against common setbacks in the sector. For readers following advancements in self-driving vehicles, understanding the nuances between freight-based and passenger-based autonomous platforms will prove useful. Urban robotaxi operations introduce new technical demands, such as advanced perception and decision making in dense environments, which differ from highway freight logistics. Investors and innovators can observe how Waabi navigates these complexities in coming years, keeping an eye on cross-industry technology sharing and the impact of collaborative partnerships across mobility sectors.
