Top Fund Manager Predicts Uber's Success in Driverless Future

The Future Fund Managing Partner Gary Black believes that Uber Technologies (NYSE: UBER) will maintain its position as the largest global ride-hailing service if it successfully introduces autonomous rides in the future.

What Happened: Black shared his insights in a recent post on social media platform X, where he expressed confidence that Uber would integrate autonomous ride options into its app alongside existing services like Uber Black, Uber X, and Uber Comfort.

He stated, “With more drivers and cars than any other network, why wouldn't UBER remain the largest ride-hailing player in the world as long as it offers driverless? It would be like betting against Amazon just because individual manufacturers can now sell direct.” This comparison highlights his view that doubts about Uber's future are misplaced.

“It couldn't be any clearer,” he added, pointing out that fears of Uber's decline echo the misconception that Amazon couldn't thrive once manufacturers began selling directly to consumers. As history has shown, this scenario did not unfold.

Black anticipates that once all car manufacturers achieve full autonomy, Uber will incorporate a driverless option in its app at a competitive price. The presence of a robust network of drivers and vehicles makes it plausible for Uber to maintain its leading position in ride-hailing.

Why It Matters: Uber already has strategic partnerships in place, particularly with Alphabet Inc.‘s Waymo. This collaboration aims to launch an autonomous ride service to the public in Atlanta, utilizing Waymo's fully autonomous Jaguar I-PACE vehicles, with Uber responsible for managing and dispatching these rides.

In a related development, Tesla CEO Elon Musk announced plans to begin testing Tesla's autonomous ride-hailing service in Texas this June, using vehicles equipped with their Full Self-Driving (FSD) technology. Musk envisions a model that combines aspects of Uber and Airbnb, allowing Tesla owners to participate in the robotaxi fleet.

Uber's CEO, Dara Khosrowshahi, has expressed interest in partnering with Tesla as well, should the opportunity arise. This demonstrates the competitive landscape in the emerging driverless technology sector, as companies are keen to collaborate and innovate.

The market is clearly aligning for the advancement of autonomous vehicles, with significant implications for the future of ride-hailing services. As the technology evolves, companies like Uber and Tesla are at the forefront of this transformative shift.

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