Uber reports that half of its riders in areas where it offers private rides say “no, thanks” to the offer.
It highlights trust issues with self-driving technology.
Uber was the first player in self-driving cars. it makes sense as technology stands to disrupt their business more than any other.
However, its attempt did not go very well.
Now, Uber is working with other companies, such as Waymo, to add autonomous vehicles to its fleet in other markets.
In a new interview with Bloomberg, Uber CEO Dara Khosrowshahi says only about half of riders agree to be driven
“The most important factor is, 'Can we make this technology safe?' We can build passenger trust, for example, in markets where we offer autonomy, half of our passengers say, no thanks?
Although autonomous riding is already here thanks to Waymo, Khosrowshahi believes there is still a lot of work to be done.
He sees the next few years focusing on security before moving on to economics:
“Safety comes first at work. We will then, in the next three to seven years, start focusing on the economy.”
He added:
“Although the parameters of independence will be lower than independence in the early years, we think that in the long term, it can be good for business and it can be a good thing for society.”
Uber is betting on a mix of autonomous and unmanned rides for years to come as consumers build confidence in the self-driving system as safety improves.
Electrek's Take
Uber is playing damage control here as Tesla CEO Elon Musk and his army of followers have been pushing the “winner-takes-all” concept when it comes to self-driving. It has been putting pressure on Uber's business.
With its independence event today, they believe Tesla is close to releasing a self-driving system that will take over the transportation industry.
The truth is more complicated.
Uber has a good understanding of the technology as it has partnered with almost every major player, including Waymo, GM's Cruise, and China's WeRide.
They are right about the fact that there is still a lot of convincing to be done to make self-driving the norm. Most people don't believe or trust technology will drive them – and with good reason, in some cases.
In terms of economics, I think that's where Tesla has an advantage over Waymo and other players with its technology already installed in millions of cars. But there's a big caveat: proving it can operate without supervision, which Tesla is far from achieving.
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