Uber intends to ultimately develop its own autonomous driving ride-sharing service (and thus get rid of the biggest cost - the drivers).
Volvo - which is owned by China's Geely and has yet to build a self-driving system - said in a statement that it would supply Uber with "autonomous driving compatible base vehicles between 2019 and 2021".
Under the non-exclusive agreement, the Swedish auto giant (which is owned by China's Geely group) will reportedly supply Uber with 24,000 vehicles based on its so-called Scalable Product Architecture (SPA), the system used on its 90 series cars as well as the new XC60 SUV.
Uber's new patent comes after it announced it was acquiring 24,000 autonomous Volvo SUVs. The base vehicles incorporate all the necessary safety, redundancy and core autonomous-driving technologies that are required for Uber to add its own self-driving technology.
Called the Sensory Simulation System, Uber's proposed solution will try to trick the body by creating movements in-car that more closely resemble what your eyes see by using a combination of movement, air and light.
Vice president of Volvo for product strategy, Marten Levenstam said, "We think it's better to be part of the potentially disruptive change as opposed to standing on the sidelines and watching it happen".More news: Trump defends Senate candidate Moore despite misconduct allegations
This seems like a major acceleration of the push into self-driving cars. Its motive is to sell cars to a company like Uber whose target is to decrease the number of vehicle owners dramatically.
Uber is working on a system to prevent travel sickness in cars, which it sees as a barrier to the adoption of self-driving vehicles, stopping people from doing other things as they are ferried to their destination.
Neither Volvo nor Uber released financial details, but based on list prices for the cars the deal could be worth more than $1 billion (around 850 million euros).More news: Union has 'mixed feelings' heading back to class
When you're driving a vehicle, this is generally not a problem.More news: Ubisoft details plans for Rainbow Six Siege Year Three