The ride-sharing company made the announcement in a blog post on Tuesday, where it said the deal differs from Uber's previous partnerships as it will not be developing its own driverless cars.
Daimler will instead "introduce and operate their own self-driving cars" on Uber's ride-sharing network, meaning that the ride-sharing app acts as a third-party software.
"Auto manufacturers like Daimler are crucial to our strategy because Uber has no experience making cars—and in fact, making cars is really hard," said Uber CEO Travis Kalanick.
"We can combine Uber's global ride-sharing network with the world-class vehicles of companies like Daimler, so that Uber riders can have a great experience getting around their cities,"
Kalanick also explained the partnership should help the ride-sharing company introduce self-driving cars sooner than anticipated.
The deal come after Uber's fleet of self-driving Volvo's were ordered off the streets of San Francisco until the company acquired the necessary permit. Footage also emerged of two of the vehicles running red lights.
Uber allows users to order a taxi on-demand with high tech features often at significantly lower cost than other local services, with payments automatically deducted from card details scanned into the app.
Source : dezeen