Uber is strategically positioning itself to become the quintessential brand for autonomous ride-hailing, aspiring to be to robotaxis what Kleenex is to facial tissues. This ambitious vision centers on ensuring that whenever a consumer seeks a self-driving car, their immediate inclination is to open the Uber application, irrespective of the underlying technology provider or the vehicle manufacturer. This approach de-emphasizes the complexities of autonomous vehicle development and instead focuses on controlling the user interface and demand aggregation, effectively becoming the indispensable intermediary in the future of transport.
The “Kleenex strategy” signifies Uber’s intent to make its brand synonymous with calling a driverless car. It implies a marketplace where multiple companies develop and operate autonomous vehicles, but Uber’s platform serves as the universal conduit for accessing these services. This allows Uber to leverage the innovations of others while maintaining its dominant market position and user base. By fostering widespread brand recognition in the evolving landscape of mobility technology, Uber aims to secure its future relevance.
To accelerate this vision, Uber has forged an array of strategic alliances with prominent autonomous vehicle developers globally. Recent partnerships include collaborations with China’s Baidu, Pony.ai, and Momenta, as well as Volkswagen, Michigan-based May Mobility, and most recently, Bay Area’s Nuro and Arizona EV manufacturer Lucid. These extensive tie-ups underscore Uber’s commitment to integrating diverse autonomous fleets onto its platform, with plans to deploy tens of thousands of robotaxis in various cities over the coming years, thereby expanding its autonomous ride-hailing network.
A core driver behind Uber’s pivot towards autonomous vehicles is the inherent economic advantage. The current ride-hailing model incurs significant costs associated with human drivers, with Uber paying out a substantial portion of rider fares. By transitioning to self-driving cars, the company aims to drastically reduce these per-mile expenses, promising a more efficient and profitable business model in the long run. This pursuit of operational efficiency is a key component of their broader Uber strategy to solidify market leadership.
However, the path to ubiquitous robotaxis is not without challenges. One significant hurdle in the near-term is the supply constraint. Unlike the millions of human drivers available through Uber’s existing network, the number of operational autonomous vehicles remains relatively small. This scarcity means that for some time, the autonomous ride-hailing market will be limited by the availability of vehicles rather than consumer demand, potentially diminishing Uber’s immediate utility as a vast network enabler.
Another impending issue revolves around revenue sharing. In the traditional model, Uber dictates the percentage of fares paid to drivers. However, autonomous vehicle developers, having invested billions in their sophisticated self-driving cars and software, are likely to demand a significantly larger share of the fares. Companies like Tesla and Waymo, which are developing their own full-stack autonomous solutions and proprietary ride-hail apps, may see less need for Uber’s intermediation, potentially driving a harder bargain and impacting Uber’s profitability in the robotaxi world.
The competitive landscape further complicates Uber’s strategy. Rivals like China’s Didi, which acquired Uber’s China operations, are pursuing a similar path, even venturing into building their own autonomous vehicle software and mass-producing robotaxis. This indicates a potential shift where key players might prefer vertical integration over purely platform-based models. Despite this, rumors of Uber’s interest in re-acquiring stakes in AV companies suggest they might not have entirely abandoned the idea of owning some of the underlying autonomous technology.
The ultimate success of the “Kleenex” concept hinges on whether autonomous vehicle companies, particularly tech giants like Tesla, opt to develop and promote their own ride-hailing applications rather than integrating with Uber. Tesla, for instance, appears committed to controlling its entire self-driving car operation, from technology and manufacturing to maintenance and the user app. While Uber CEO Dara Khosrowshahi has expressed hopes for collaboration, Tesla’s independent approach poses a substantial test to Uber’s vision of becoming the universal gateway for the autonomous ride-hailing future.
Leave a Reply