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by ra7 1118 days ago
> The backstory that seems to have been forgotten here is that self driving cars are still a money bleeding endeavor. It's why Uber sold its own self driving division and it's something Cruise has said in the past still needs to be figured out.

Uber sold their self driving division because they killed someone in Arizona due to negligence. And then Anthony Lewandowski happened. Those two incidents complete deflated Uber's hopes to have autonomous vehicle technology. I'm pretty sure they would still be pursuing self driving if not for those incidents.

3 comments

I think the more likely here is that Uber sold self-driving group (alongside other "big bets" like flying taxi research group) because of existential threat to the business during the start of COVID-19 which made them focusing on the main business (+eats) and sell parts that have no profitability in sight.
That's exactly right. Uber self driving was burning through the tune of billions of dollars a year when covid reduced revenue by the tune of 70%. Not exactly sustainable w/ only a few billion dollars of cash on hand.

As terrible as a pedestrian death is, the reality is there's news about Tesla accidents and near-accidents on the news all the time and people still love the brand. Sometimes it's easy to forget that Uber/Amazon/M$/etc hating is not as widespread in the general population as it is among tech bros.

As for Otto, my understanding is Uber pivoted similarly on the freight side, with a partnership w/ Volvo Autonomous Solutions.

The self-driving division was done to attract investment because investors thought it sounded cool. It would have been bad for Uber's business to have them - Uber relies on not owning cars, which moves all the maintenance to the driver-owners. If you own a self-driving car you still have to maintain it.
Did they even lose a civil suit for killing that person? They were not punished.