The original plan was to start out with human drivers while developing the technology for self-driving vehicles. This was a solid plan because owning self-driving tech is a good moat.
However it’s clear by now that Uber won’t be anywhere near the first to bring self-driving tech to market.
Ridesharing itself has only weak network effects because drivers are interchangeable and can easily switch apps. All Uber have in this case is their brand, which is more toxic than a Machineel tree.
If self-driving does eventually pan out then they are also in a bad way because whoever develops that tech will likely directly compete with Uber, at lower margins.
However it’s clear by now that Uber won’t be anywhere near the first to bring self-driving tech to market.
Ridesharing itself has only weak network effects because drivers are interchangeable and can easily switch apps. All Uber have in this case is their brand, which is more toxic than a Machineel tree.
If self-driving does eventually pan out then they are also in a bad way because whoever develops that tech will likely directly compete with Uber, at lower margins.