Thursday, August 16, 2018

How Long

The self-driving cars were Uber's hail mary pass. If they get rid of that... then? Their path to profitability always required establishing monopoly - and then jacking up rates - somehow, but their path to monopoly was never clear. I don't even think self-driving cars were the path. Just another shiny object to flash to investors. Now the (some) investors are done.

Some investors have told Uber officials that it may be wise to divest the self-driving car unit, said a person familiar with the issue. Uber has invested least $2 billion in the unit over the past three years. Yet the company hasn’t yet come up with a clear path to commercializing the technology it has developed.

Will be interesting if the two major taxi app companies (Uber, Lyft) fold.