Sunday, April 9, 2017

Uber - autonomous or bust

Uber worries that if a competitor comes to market first with a fully autonomous vehicle then it would crush The company in every market that they could launch in.

Many automakers worry that consumer purchases of cars are coming to an end ( Cars are sitting idle 95% of the time so it doesn't make sense for most people to have them (at least in major city centres). As a result, automakers have been starting their own ridesharing programs, like BMW ( Tesla's program is starting soon as well ( allowing consumers to opt-in for their vehicles to be a part of it whenever they'd like but banning the use of their vehicles for other ridesharing programs.
So far Uber has actually been working with different automakers, but they worry that an automaker that they can't partner with or purchase from will beat them to market. And even if it is an automaker that's willing to sell to them, what's stopping that company from selling to their competitors? Whether he's right or wrong, Uber's CEO believes that they must be first and the best. Yes, I think that you're right in terms of the importance of establishing patents (and potentially having even competitors pay royalties) but with driver salaries being one of their largest costs, if a competitor can come to market and undercut their costs by 30% while being more profitable, they're in trouble - especially if they can't buy those cars themselves. -- commented elsewhere


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