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Monday, November 18, 2019

Is Google's driverless car a threat to Uber?

In a few weeks, Google's Waymo will be launching the first commercial driverless car service in Phoenix, Arizona. According to an article by Bloomberg, it will compete directly with Uber.
Waymo's cars will operate 24h and won't have drivers to pay, and so will be ~80% cheaper than Uber’s service. Uber just won't be able to compete.
Waymo won't partner with Uber as it may as well develop its own app, probably integrated with Google Maps.
Which is why Uber is trying to get its own driverless car out fast. But it’s at least a year behind Waymo and once Waymo has that first mover advantage, and all the data and machine learning advantages that come from it, it will be next to impossible for Uber to catch up.
I mean, by the time Uber's driverless cars have done a million miles, Waymo's would have done twenty million. And that means, for the foreseeable future, Waymo cars will be the safest, most reliable, and will offer the best customer experience - absolutely huge advantages.
Waymo will win big in this space. Which is why it's the beginning of the end for Uber.


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