Uber Technologies Inc. UBER CEO, Dara Khosrowshahi, stated that Elon Musk has no plans to integrate Tesla Inc. TSLA’s forthcoming robotaxis into Uber’s platform.
What Happened: Speaking with Bloomberg TV at the FII conference in Miami on Friday, Khosrowshahi revealed that Musk plans to roll out Tesla's robotaxi service without external partnerships.
“They want to build it alone, so to some extent in Austin, we and Waymo will be competing with Tesla when they launch,” he said, referencing Alphabet Inc.’s GOOG GOOGL autonomous vehicle unit.
Khosrowshahi believes that Uber would be a logical platform for Tesla drivers, as it introduces variable demand to the autonomous vehicle (AV) ecosystem.
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Uber has intensified its focus on autonomous vehicle (AV) technology in recent years, forging over a dozen manufacturing partnerships and investing in multiple self-driving tech firms since 2023. The company is preparing to roll out autonomous rides with Waymo in Austin next month, followed by an expansion to Atlanta this summer.
Why It Matters: This revelation comes after Khosrowshahi expressed optimism about a potential partnership between Uber and Tesla for robotaxis. In a recent interview, he stated that he hoped to convince Tesla to work with Uber, emphasizing that no one wants to compete against Tesla if they can help it.
Uber halted its in-house self-driving car development in 2020, selling its autonomous vehicle division to Aurora. Reflecting on the decision, the CEO explained that during the pandemic, he prioritized capital efficiency, as the company was incurring massive losses in robotaxi development. He acknowledged that hardware was not Uber's core strength.
The launch of Tesla's robotaxis and Waymo's expanded operations could impact Uber's ride volume growth and reduce its commission rates, according to Bloomberg. Additionally, Waymo offers driverless rides through its app in key markets like San Francisco and is set to expand to Miami next year.
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Photo courtesy: Tesla
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