The announcement by the business, which is owned by Google parent company Alphabet, expands on a fleet of self-driving cars it has been building with Fiat Chrysler since 2015. Jaguar Land Rover (JLR) will deliver the I-PACE models from 2020 to 2022, with the aim of providing up to one million rides per day.
Financial terms of the deal were not disclosed but at a starting price of about $70,000 for the I-PACE, a fleet of 20,000 vehicles would be worth $1.4bn (£990m). Waymo has been working on self-driving cars since 2009 and currently tests its self-driving system on Chrysler Pacific minivans.It plans to launch a ride service in Phoenix, Arizona, in the coming months before rolling it out more widely later.
The tie-up with Jaguar will give it a way to appeal to a more upmarket passengers as well as those who want to avoid petrol or diesel guzzling vehicles.
JLR chief executive Dr Ralf Speth said: "In joining forces with Waymo we are pioneering to push the boundaries of technology."
UK-based JLR, owned by India's Tata Motors is building the new I-PACE, which launched earlier this month, in Austria.