Uber acquired Otto around 08/2016. I don't think this explains it.
The actual self driving software, and more importantly, all of the collected data from the waymo fleet would have been the key.
They don't want to do this, so, if they do, it's because they had to do this.
Practically all of the current sensor suites are expensive, bulky, and power hungry. If you want them on lots of cars, you need to reduce all 3 of those characteristics dramatically.