Daimler joins forces with Bosch to make self-driving taxis

Mercedes-Benz owner Daimler and provider Robert Bosch are collaborating to develop self-driving vehicles in an alliance targeted at speeding up the production of “robo-taxis”.

The pact between the world’s biggest maker of premium cars and the world’s largest vehicle supplier forms a powerful counterweight to new automobile industry players like ride-hailing Uber and Didi which are also dealing with self-driving vehicles.

Technology companies and automakers are making every effort to get used to a shifting landscape in the vehicle industry as consumers significantly utilize mobile phones to locate, hail and lease vehicles, rather than heading out and buying vehicles.

The alliance not just marks an end to Daimler’s efforts to establish an autonomous car mainly itself, however moves the vehicle industry’s aspirations beyond merely developing prototype automobiles towards industrial-scale production of self-driving vehicles.

Financial terms were not revealed of the deal between the two German business, which was revealed on Tuesday.

Bosch – which was established in 1886, the exact same year that Mercedes founder Carl Benz patented the motorcar – will make software and algorithms required for autonomous driving together with the automaker.

Bosch stated Mercedes would have the ability to use the collectively developed system for two years prior to it could be used to rivals.

The deal will assist the automotive supplier make up ground in a competitive autonomous driving system sector where competitors Continental, Delphi, ZF and others have also made huge investments.