{"id":4047,"date":"2025-02-05T12:05:13","date_gmt":"2025-02-05T12:05:13","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/is-waymo-friend-or-foe-to-uber\/"},"modified":"2025-02-05T12:05:13","modified_gmt":"2025-02-05T12:05:13","slug":"is-waymo-friend-or-foe-to-uber","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/is-waymo-friend-or-foe-to-uber\/","title":{"rendered":"Is Waymo Friend or Foe to Uber?"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">In 2020, Uber was at a crossroads: The company had made an expensive bet on robot taxis, but the project was laden with legal problems and burning through cash. So Uber <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2020\/12\/07\/technology\/uber-self-driving-car-project.html\" title=\"\">gave it away<\/a> to another start-up.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But five years later, Uber\u2019s future seems as tied to autonomous vehicles as ever. The company is now betting that it can embrace driverless taxis without spending money to build them \u2014 at the risk of being overtaken by the companies that do.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In recent months, Uber has doubled down on what it calls its \u201cplatform strategy,\u201d teaming up with robot taxi companies like Waymo. In Phoenix, riders can order a Waymo car through the Uber app, and in Austin, Texas, Waymo\u2019s robot taxis will soon don the Uber logo. The ride-hailing giant now has 15 autonomous vehicle partnerships, from Waymo to international companies like WeRide and autonomous food delivery services like Avride.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">But those partners are also competitors. In December, when Waymo said it was expanding into Miami without an Uber partnership, Uber\u2019s stock tumbled 9 percent. And Waymo\u2019s expansion is far from over: Last month, the company announced that it would test its vehicles in 10 new cities this year.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Tesla\u2019s chief executive, Elon Musk, said last week that his company would have self-driving taxis on the roads of Austin in June. He had made similar predictions for years about when Tesla vehicles would be able to drive themselves, but industry insiders say it is most likely only a matter of time before his company makes good on his promise.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">For Uber, the question is whether it will ride on or get run over by the driverless taxi expansion. \u201cNo one is exactly sure who\u2019s going to be the winning technology,\u201d said Tom White, a senior research analyst with the financial firm D.A. Davidson. \u201cSo everyone is keeping their potential enemies close.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">On Wednesday morning, Uber said that in its most recent quarter, its gross bookings, an important measure of the company\u2019s business, grew 18 percent from a year earlier, which was higher than Wall Street investors had expected. Uber\u2019s revenue increased 20 percent to $12 billion, also higher than Wall Street expectations. Uber also beat expectations for net income thanks to $7 billion in tax benefits.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Wall Street analysts were expected to ask Uber executives about its relationship with the robot taxi companies in a phone conference on Wednesday morning.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">In the 2010s, the hype around autonomous vehicles \u201cprobably ran ahead of the technology,\u201d Andrew Macdonald, Uber\u2019s senior vice president of mobility, said in an interview. \u201cNow that\u2019s starting to flip.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">It is hard to tell if Waymo has cut into Uber\u2019s business, including in cities like San Francisco, where Waymo\u2019s cars can fairly be described as a mainstream transportation option. (Dara Khosrowshahi, Uber\u2019s chief executive, has said robot taxis have not affected demand for Ubers.)<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Lyft, Uber\u2019s top rival, has taken a similar approach to robot taxis, announcing three autonomous partnerships of its own since November, with more in the works.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The value of robot taxis to Uber and Lyft is clear: Human labor is one of their largest costs. The companies also envision a future when people will buy robot taxis to use as personal vehicles and, in off hours, rent them to ride-hailing networks, said Jeremy Bird, Lyft\u2019s head of driver experience.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">But for now, robot taxis are more costly than they are profitable and require an enormous amount of capital to develop. After General Motors, the owner of Cruise, <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/12\/10\/business\/gm-cruise-robotaxi.html\" title=\"\">bowed out of the robot taxi competition<\/a> in December, the club of companies funding the race for autonomy essentially shrank to two: Alphabet, the parent company of Waymo and Google, and Amazon, the parent of Zoox.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">In Phoenix, riders can order a Waymo through Uber\u2019s app, an arrangement coming soon to Atlanta and Austin. In those two cities, Uber will also provide fleet management services like cleaning and charging. The company takes a portion of the revenue from each ride, likely between 10 and 20 percent, according to analyst estimates. (Mr. Macdonald declined to provide financial details of the partnership but said they would evolve over time.)<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The increased supply of vehicles on the Uber and Lyft apps also shortens waits and lowers costs for riders. And both companies already operate fleet management businesses, so taking over those services for a partner like Waymo is convenient, Mr. Macdonald and Mr. Bird said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">For consumers, having robot taxi rides on an app like Uber or Lyft is a draw in itself. \u201cThat\u2019s the biggest benefit for us,\u201d Mr. Bird said. \u201cJust diversifying the types of options that riders have on the platform.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-6\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">But the value of an Uber partnership for Waymo becomes less clear in a city like San Francisco, where the demand for Waymos already exceeds the supply.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Melissa Covarrubias, a lawyer in Phoenix, now exclusively takes Waymo as a ride-hailing option, feeling safer and more comfortable after negative experiences with Uber and Lyft drivers, she said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cAnd the interior of the Waymo is so nice and luxurious, and you can select your own music,\u201d she added.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Sean Campbell, also a lawyer in Phoenix, said Waymo had become his ride-hailing choice around 35 percent of the time, especially when going to work. But he uses Lyft to get to events like sports games or concerts, where Waymo would have to navigate large crowds.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cBut for a night out, I always take Waymo,\u201d Mr. Campbell said. \u201cThe thing with Waymo, beyond the technology: It\u2019s just fun.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-7\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Uber\u2019s relationship with Google, before Waymo was spun off, had tumultuous beginnings. In 2016, Anthony Levandowski, a top Google engineer, left the company and later became an executive at Uber. In 2020, he was <a class=\"css-yywogo\" href=\"https:\/\/www.justice.gov\/usao-ndca\/pr\/former-uber-executive-sentenced-18-months-jail-trade-secret-theft-google\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">convicted<\/a> of stealing Google\u2019s trade secrets, among other legal disputes between the two companies.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But Mr. Khosrowshahi, who took over as Uber\u2019s chief executive 2017, mended the relationship. In 2020, he handed off Uber\u2019s autonomous research division to the start-up Aurora, which Uber then invested $400 million in.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cFirst we had to make peace with them and settle in court, et cetera,\u201d Mr. Khosrowshahi told The New York Times on a <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/10\/18\/podcasts\/powerful-ai-by-2026-ubers-ceo-on-the-robotaxi-future-caseys-tiktok-test.html?\" title=\"\">recent podcast<\/a>. He added, \u201cAnd then over a period of time, we built relationships.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In response to questions about its partnership with Uber, a Waymo spokesman provided a statement from the company\u2019s <a class=\"css-yywogo\" href=\"https:\/\/waymo.com\/blog\/2024\/09\/waymo-and-uber-expand-partnership\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">blog post<\/a> announcing the expansion to Atlanta and Austin.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-8\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Uber\u2019s earnings calls have become a regular forum for analysts to pepper Mr. Khosrowshahi with questions about his autonomous strategy. While most analysts believe the company is on a promising track with its partnerships, the robot taxis present a big \u201crisk or opportunity for Uber,\u201d said Nikhil Devnani, an analyst at Bernstein. \u201cI think the market is still trying to figure out which outcome it\u2019s going to be.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/02\/05\/technology\/waymo-uber-partnership.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2020, Uber was at a crossroads: The company had made an expensive bet on robot taxis, but the project<\/p>\n","protected":false},"author":1,"featured_media":4048,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[1681,1744,304,123,1742,1109,392,1741,1743,1737,334,1740,1738,1739],"class_list":["post-4047","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-alphabet-inc","tag-anthony","tag-company-reports","tag-computers-and-the-internet","tag-dara","tag-driverless-and-semiautonomous-vehicles","tag-google-inc","tag-khosrowshahi","tag-levandowski","tag-lyft-inc","tag-tesla-motors-inc","tag-uber-technologies-inc","tag-waymo","tag-zoox-inc"],"yoast_head":"<!-- This site is optimized with 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