Fiat Chrysler joins BMW-Intel alliance builds robotaxi

Fiat Chrysler Automobiles joins an consortium led by BMW to develop robotaxi booked through smartphones and get paid at all times. Autonomous cars allow automakers to take the taxi market that operated by ride-sharing operators. The strategic move by Fiat Chrysler intensifies the competition of automakers and operators in the transportation business.

Tinuku Fiat Chrysler joins BMW and Intel alliance builds robotaxi

The Fiat Chrysler and BMW collaborations also include Intel-Mobileye which will accumulate engineering expertise and other expertise to open autonomous car industries and platforms can be adopted by other car makers.

A report says the taxi market is worth US$2 trillion by 2030. Analysts also say autonomous vehicles will have a share of about 15 percent of total vehicle production in Europe by 2030.

Autonomous cars by car makers are predicted to hit the traditional taxi market. Companies that operate robotaxi do not have to pay the driver so it is more cost-effective and competes with other forms of transportation including buses.

Marchionne has always said automakers must collaborate to reduce the exorbitant cost of upgrading the latest technology. In April, Fiat Chrysler sought a new partner as a separate unit of the Alphabet's Waymo alliance.

"In order to advance autonomous driving technology, it is vital to form partnerships among automakers, technology providers and suppliers," said Marchionne.

"Joining this cooperation will enable FCA to directly benefit from the synergies and economies of scale that are possible when companies come together with a common vision and objective," said Marchionne.

Fiat Chrysler says it will plan to incorporate autonomous car technology into mass production by 2021 or according to a time frame owned by competing companies that also develop similar cars. Fiat Chrysler's CEO Sergio Marchionne establishes synergies and economies of scale will be created within the alliance.

The consortium says it has set up 40 test vehicles on the highway by the end of 2017 to equip 100 test vehicles to be used by Mobileye in the United States.