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> Uber's entire valuation hinges on the idea that they will be in the big three of autonomous driving No, not even close. Their valuation is as a convenience p
by burnte 7y ago
> Uber's entire valuation hinges on the idea that they will be in the big three of autonomous driving
No, not even close. Their valuation is as a convenience provider. Their work in the autonomous space it an alternative revenue model, something they can sell/ license to car makers. They can gather a lot of road and driving data through their apps. Anyone who invested in them because of their autonomous driving research is even dumber than those who invested because they'll take over the rideshare market. Uber is a good idea, but it's ALWAYS been a bad investment due to their burn rate.
- jmathai 7y agoI believe the point is that when autonomous vehicles are allowed on the road then those companies can undercut Uber's cost by whatever % they pay their drivers (≈40%?). It's more of survival for Uber to get their own autonomous driving technology than it is an alternative business model. Without it they'll get priced out of the market.
- jjeaff 7y agoIf you were correct, then Uber's valuation would be much much lower. They aren't profitable currently and their professed path to profitability is autonomous.