Uber CEO Dara Khosrowshahi on self-driving's future, changing business model, job displacement

Overview

This episode features Uber CEO Dara Khosrowshahi discussing the future of autonomous vehicles, Uber's evolving business model, the societal impact of self-driving technology, and the company's strategic approach to growth and innovation.

Notable Quotes

- Ultimately, we think autonomous can be both superhuman in terms of safety and can save millions of lives over time on the road. - Dara Khosrowshahi, on the transformative potential of self-driving technology.

- If you're looking to maximize the revenue of those robo-taxis today, we are your ticket to the maximization of that revenue. - Dara Khosrowshahi, pitching Tesla on integrating its fleet into Uber's network.

- We are essentially a platform for work, and transportation is just the first kind of work. - Dara Khosrowshahi, addressing job displacement and Uber's broader vision for on-demand labor.

🚗 Autonomous Vehicles and Partnerships

- Uber has over 20 partnerships globally in mobility and delivery, including collaborations with Waymo, Baidu, and Pony.ai.

- Autonomous vehicles are already operational in cities like Austin and Atlanta, with plans to expand further in the U.S., Europe, and China.

- Chinese companies are leading in Level 4 autonomy (no safety driver), showcasing strong safety records despite complex driving environments.

- Khosrowshahi emphasized the cost reduction in hardware, such as LiDAR, as a key enabler for scaling autonomous fleets.

📈 Business Model Evolution

- The shift to autonomous fleets challenges Uber's traditional marketplace model of connecting drivers and riders.

- Uber plans to maintain a hybrid network of human drivers and autonomous vehicles for the foreseeable future.

- Khosrowshahi highlighted Uber's advantage in geographic density, ensuring higher utilization and revenue per vehicle compared to standalone fleet operators.

- Long-term, Uber envisions financial players owning fleets, similar to real estate investment trusts (REITs) in the hotel industry.

🌍 Societal Impact and Job Displacement

- Khosrowshahi acknowledged the societal challenges posed by AI and automation, particularly job displacement for drivers.

- Uber aims to balance the introduction of autonomous vehicles by reducing driver recruitment in affected markets while maintaining earnings for existing drivers.

- The company is exploring new types of work, such as AI labeling, to provide alternative opportunities for displaced workers.

🚀 Expanding Transportation Horizons

- Uber is investing in eVTOL (electric vertical takeoff and landing) technology through partnerships with companies like Joby Aviation.

- Drone delivery and sidewalk robots are being tested for short-distance and suburban deliveries, covering over 50% of Uber's delivery market potential.

- Khosrowshahi sees the third dimension of transportation as critical for alleviating urban congestion and expanding mobility solutions.

💰 Capital Allocation and Growth Strategy

- Uber's $20 billion stock buyback reflects confidence in its profitability, with $8.5 billion in cash flow generated over the past year.

- The company is simultaneously investing aggressively in autonomous vehicle R&D and partnerships.

- Khosrowshahi emphasized Uber's ability to remain capital-light while leveraging its network to drive demand for asset-heavy businesses like fleets and delivery systems.