Uber is launching a new suite of services focused on helping self-driving car developers plug into its ride-hailing network. The move signals an aggressive push to add robotaxis to its platform to compete with Tesla (TSLA). Despite the news, Uber stock fell more than 4% on Monday, and Tesla stock also fell nearly 4%.
“Innovation in autonomous driving is progressing rapidly, but meaningful commercialization will take longer,” Uber CEO Dara Khosrowshahi said in a news release. “For more than a decade, Uber has helped set the standard for on-demand mobility and built the capabilities that make ‘push-button-to-ride’ work on a global scale. With Uber Autonomous Solutions, we are externalizing these hard-earned capabilities for our partners.”
Uber’s overall robo-taxi strategy is to partner with AV developers, promising that its demand-forecasting app and over 200 million regular users will quickly recoup the cost of developing self-driving cars. Uber Autonomous Solutions will provide robotaxi makers with a “comprehensive suite of services” including AI training data, fleet management, user experience, regulatory support and financing, Uber said in a statement. Today’s decline comes as ride-hailing companies face pressure from negative reports about AI job losses.
Uber’s move to AI is also being implemented at Tesla, a move that some Wall Street investors are praising TSLA for. Late last month, Tesla announced it would end production of its long-running Model S and Model X in order to convert its Fremont factory to manufacturing the Optimus humanoid robot. This was Tesla’s first-ever annual sales decline, with sales down 3% year over year and auto sales down 11%. The move fuels sentiment that big tech companies like Tesla are going all-in on AI.
