[computerex]

Don't forget that Uber is in the autonomous driving business. They burnt through cash to get market share, because when self driving becomes a thing, they'll have a huge swing in margins/profits as self driving will get rid of their greatest expense (human drivers).

[bunderbunder]

Which self-driving car business would you bet on: One that's sinking most its capital into developing its self-driving technology, or one that's sinking most its capital into subsidizing drivers' incomes, and needs to do so simply to stay alive?

If Uber really, really believed that self driving was such a sure thing for them, their optimal strategy would be to wind down the rideshare business, the food delivery business, and all its other businesses that aren't self driving, so that it could redirect its mountains of capital toward developing self driving even sooner. Because as soon as cars that really can operate fully autonomously hit the scene, it's not going to matter who was incumbent in the rideshare space or how dominant they are. The company with the self driving cars will take over just about as quickly as they can manufacture new cars.

The fact that they're not playing it this way implies that they're not so confident that they're well positioned to be first past the post with self-driving cars. Which means we probably shouldn't be, either.

[georgeecollins]

I believe Rodney Brooks when he says that autonomous cars are much farther away than some predict. Not in five years anyway.

[dragonwriter]

> Don't forget that Uber is in the autonomous driving business.

Or, at least, has spent a lot of money failing to be in that business.

> They burnt through cash to get market share, because when self driving becomes a thing, they'll have a huge swing in margins/profits as self driving will get rid of their greatest expense (human drivers).

Established relationship with human drivers and the acquisition cost to overcome that is a big part of Uber’s moat, which is potentially erased when self-driving from anyone but Uber is real.

[justapassenger]

They are far, far behind in autonomous driving business. They tried to catch up, by being super reckless, and they killed a person.

Using self driving car to justify their valuation is very risky - it's huge project, tons of competition, no idea about when it could even become a product, etc.

[foobiekr]

Uber is also in the flying taxi business.

Alternately, Uber attaches their public messaging to external hype cycles and, in fact, is just a taxi business.