In 2020, Uber was at a crossroads: the company had made an expensive taxi betting bet, but the project was loaded with legal problems and burning through cash. So Uber gave it to another start.
But five years later, the future of Uber seems to be connected to autonomous vehicles as always. The company is now betting that it can hug taxis without drivers without spending money to build it – with the risk of being overcome by the companies they are doing.
In recent months, Uber has doubled in what he calls a “platform strategic”, working with robot taxi companies such as Waymo. In Phoenix, riders can order a Waymo car through the Uber app, and in Austin, Texas, Waymo’s taxi robots will soon give the Uber logo. The giant now has 15 autonomous corporate vehicles from Waymo to international companies such as Weride and Food Delivery Services such as Avride.
But these partners are also competitors. In December, when Waymo said he was expanded to Miami without Uber cooperation, Uber’s stock decreased by 9 %. And the expansion of Waymo is far from: Last month, the company announced that it will try its vehicles in 10 new cities this year.
Tesla’s chief executive Elon Musk said last week that his company would have self-guiding taxi on the streets of Austin in June. He had made similar forecasts for years when Tesla vehicles could drive themselves, but industry trusts say that it is probably just a matter of time before his company to do good to his promise.
For Uber, the question is whether it will drive or run from the driver without a taxi expansion. “No one is sure who will be the victorious technology,” said Tom White, a senior researcher analyst at the financial company Da Davidson. “So everyone keeps their potential enemies close.”
On Wednesday morning, Uber said that in the latest quarter, its gross bookings, a significant measure of the company’s company, increased by 18 % compared to the previous year, which was higher than Wall Street investors. Uber’s revenue increased by 20 % to $ 12 billion, also higher than Wall Street’s expectations. Uber also hit expectations for net income thanks to $ 7 billion in tax benefits.
Wall Street analysts are expected to ask Uber executives about her relationship with taxi robots at a telephone conference on Wednesday morning.
In 2010, the advertising campaign around the autonomous vehicles “probably ran in front of technology,” Andrew MacDonald, a senior vice president of Uber, said in an interview. “Now he is starting to turn.”
It is difficult to say if Waymo has cut off Uber business, including cities such as San Francisco, where Waymo cars can be described enough as a transport option. (Dara Khosrowshahi, Uber’s chief executive, said taxi robots have not affected the demand for Ubers.)
Lyft, Uber’s leading opponent, has adopted a similar approach to taxi robots, announcing three autonomous partnerships from his own from November, with more projects.
The value of taxi robots in Uber and Lyft is clear: human work is one of their highest expenses. Companies also envision a future when people buy taxi robots to use personal vehicles and, in hours outside, to rent them on a walk networks, said Jeremy Bird, head of the Lyft driver’s experience.
But for now, taxi robots are more expensive than they are profitable and require a huge amount of capital to grow. After General Motors, the owner of Cruise, bowed to the Robot Taxi Contest in December, the Association of Companies who fund the struggle for autonomy were essentially shrinking to two: the alphabet, the parent company of Waymo and Google, and Amazon, Amazon, Parent of Zoox.
In Phoenix, riders can order a Waymo through the Uber application, an arrangement that comes to Atlanta and Austin soon. In these two cities, Uber will also provide fleet management services such as cleaning and charging. The company receives part of the revenue from each ride, probably between 10 and 20 %, according to analysts’ estimates. (Mr MacDonald refused to provide financial details of the corporate relationship, but said they would evolve over time.)
Increased vehicles in Uber and Lyft also reduces waiting and reduces the cost for riders. Both companies are already operating fleet management companies, so taking over these services for a partner such as Waymo is convenient, Mr MacDonald and Mr Bird.
For consumers, the Robot taxi route to an application such as Uber or Lyft is a draw in itself. “This is the greatest benefit for us,” Mr Bird said. “Simply diversifying the types of options that riders have on the platform.”
But the value of a corporate Uber relationship for Waymo becomes less clear in a city like San Francisco, where the demand for Waymos is already giving off the offer.
Melissa Covarrubias, a lawyer at Phoenix, is now exclusively taking Waymo as a ride option, feels safer and more comfortable after negative experiences with Uber and Lyft drivers, she said.
“And the interior of Waymo is so nice and luxurious, and you can choose your own music,” he added.
Sean Campbell, also a lawyer in Phoenix, said Waymo had become his choice around 35 percent of the year, especially when he went to work. But he uses Lyft to reach events such as sports games or concerts, where Waymo will have to navigate large crowds.
“But for a night out. I always get waymo,” Mr Campbell said. “Thing with Waymo, beyond technology: It’s just fun.”
Uber’s relationship with Google, before Waymo returned, had hectic principles. In 2016, Anthony Levandowski, a leading Google engineer, left the company and later became executive at Uber. In 2020, he was convicted of theft of Google’s trade secrets, including legal disputes between the two companies.
However, Mr. Khosrowshahi, who assumed as CEO of Uber 2017, approved the relationship. In 2020, he handed over Uber’s autonomous research department to Aurora, which Uber then invested $ 400 million.
“First we had to peace with them and settle in court, etc.,” Mr Khosrowshahi told the New York Times in a recent podcast. Added, “and then for a period of time, we built relationships.”
Answering questions about her collaboration with Uber, a Waymo spokesman provided a statement from the company’s blog post that announced the expansion to Atlanta and Austin.
Uber’s profit calls have become a regular forum for analysts to pepper Mr. Khosrowshahi with questions about his autonomous strategy. While most analysts believe that the company is on a promising route with its partnerships, taxi robots have a big “risk or opportunity for Uber,” said Nikhil Devnani, a Bernstein analyst. “I think the market is still trying to understand what the result will be.”
