Mobileye Shifts Gears: From Supplier to Robotaxi Operator

Mobileye, known for supplying autonomous vehicle technology, announced a significant strategic pivot Tuesday: the company plans to launch its own robotaxi service in a U.S. city in 2027. This move signifies an expansion beyond its established role as a technology supplier.

The initial fleet will comprise 100 autonomous vehicles, with plans to gradually scale up to approximately 17,000 robotaxis over the subsequent five years, should the service prove successful. Mobileye's founder and CEO, Amnon Shashua, stated that the robotaxi industry is still in its early stages and offers transformative potential.

Previously, Mobileye focused on providing computer vision chips for automotive safety and driver assistance systems. More recently, the company developed comprehensive self-driving chips and software, testing them in various cities and supplying its system to manufacturers like Volkswagen. This new venture, however, positions Mobileye to directly compete with companies it currently supplies.

The company will establish a new business division to manage its robotaxi operations, utilizing its proprietary self-driving system. Mobileye intends to manage the fleet and will integrate Moovit, the transit and ride-hailing application it acquired, to handle the consumer-facing aspects of the service.

Mobileye emphasized that this new operating business will complement its existing supplier partnerships, not replace them. The company stated it would collaborate with "AV-ready vehicle platform manufacturers" for its fleet, though the specific vehicle model remains undisclosed. An illustration accompanying the announcement suggested a modified electric crossover from Chinese automaker Great Wall Motors.