Hyundai Motor Company has entered into a partnership with Avride, an autonomous vehicle startup, to jointly develop autonomous vehicles designed for robotaxis and delivery services. This collaboration marks a significant deepening of the relationship between the two companies, with Avride expanding its fleet of Hyundai Ioniq 5 vehicles and integrating them with its autonomous technology.

The partnership will focus on developing autonomous vehicle technology for robotaxis, with the potential to explore other use cases, including autonomous delivery services using Avride's sidewalk delivery robots. The deal is a strategic move for both companies, as they aim to accelerate the development and deployment of autonomous vehicles.

Under the agreement, Avride will expand its fleet of Hyundai Ioniq 5 vehicles, which will be assembled at the new Hyundai Motor Group Metaplant America factory in Georgia. The vehicles will then be integrated with Avride's autonomous technology, with plans to roll out the new fleet later this year in Dallas as part of Avride's robotaxi service, accessible only through the Uber app.

This partnership is one of several significant deals landed by Avride in the past year, demonstrating the startup's growing influence in the autonomous vehicle industry. For Hyundai, the partnership marks a further expansion of its autonomous vehicle efforts beyond its in-house developments, following a deal with Waymo in October 2024 to bring the Ioniq 5 EV to its robotaxi network.

Hyundai has a significant stake in the autonomous vehicle market, being the primary backer of Motional, an autonomous vehicle startup created in 2019 through a $4 billion joint venture with supplier Aptiv. Despite Motional's challenges, including Aptiv's decision to no longer allocate capital towards the endeavor, Hyundai stepped up and invested another $1 billion into Motional, including $448 million to buy 11% of Aptiv's common equity interest.

However, Motional has faced significant restructuring, including layoffs and the departure of its CEO Karl Iagnemma in September. Avride's collaboration with Hyundai is not intended to replace Motional, but rather to complement its efforts, similar to Hyundai's deal with Waymo.

Dmitry Polishchuk, CEO of Avride, praised the partnership, stating, "Our team has been working with Hyundai Motor Group since 2019, and we value the professionalism and collaboration that have defined this partnership. This new agreement with Hyundai Motor Company will help us scale our operations significantly, with plans to expand our fleet to up to 100 autonomous IONIQ 5's in 2025, leveraging Hyundai Motor's IONIQ 5 and our autonomous driving technology."

Chang Song, President and Head of Hyundai Motor Group Advanced Vehicle Platform (AVP) Division, added, "Hyundai Motor Company is actively advancing its autonomous vehicle foundry business in pursuit of pioneering vehicles most suitable for Level 4 autonomous driving. We are expanding our collaboration with leading autonomous driving tech companies like Avride, fostering an environment where their innovations can actively participate in our endeavor to shape the future of mobility."

The partnership between Hyundai and Avride signals a significant step forward in the development and deployment of autonomous vehicles, with potential implications for the future of transportation and mobility. As the autonomous vehicle market continues to evolve, collaborations like this one will play a crucial role in shaping the industry's trajectory.