Uber Technologies Inc. CEO Dara Khosrowshahi revealed that Tesla Inc. CEO Elon Musk has no intention of integrating Tesla’s upcoming robotaxis into Uber’s ride-sharing platform, positioning the two companies as potential competitors in the autonomous vehicle (AV) space. The disclosure came during an interview with Bloomberg TV’s Manus Cranny at the Future Investment Initiative (FII) conference in Miami on Friday.
Khosrowshahi confirmed that he has engaged in discussions with Musk about the possibility of collaboration but indicated that Tesla is determined to pursue its autonomous vehicle strategy independently. “I’ve had conversations with him at this point,” Khosrowshahi said. “They want to build it alone, so to some extent in Austin, we and Waymo will be competing with Tesla when they launch,” he added, referencing Alphabet Inc.’s autonomous-vehicle subsidiary, Waymo. Despite Tesla’s current stance, Khosrowshahi left the door open for future collaboration, stating, “Life is long, but we would love to partner with them.”
The Uber CEO emphasized the potential economic benefits of a partnership, arguing that integrating Tesla’s robotaxis into Uber’s platform would make “a lot of economic sense.” He highlighted Uber’s ability to drive demand for autonomous vehicles, which is often inconsistent. “What we bring is demand to the AV ecosystem when demand often is quite variable,” Khosrowshahi explained.
Tesla has yet to publicly comment on the matter. A Tesla spokesperson did not respond to an emailed request for comment from Bloomberg.
Uber’s Broader Autonomous Vehicle Strategy
Uber has been actively investing in and developing its autonomous vehicle strategy in recent years. Since 2023, the company has formed more than a dozen partnerships with manufacturers and invested in multiple self-driving technology companies. These efforts reflect Uber’s ambition to remain a dominant player in the ride-sharing industry as it transitions toward autonomy.
During earnings calls and other presentations, Uber executives have increasingly focused on detailing the company’s AV strategy. This shift underscores the growing importance of autonomous technology to Uber’s long-term business model, which currently relies heavily on human drivers. The company’s partnership with Waymo, for instance, is a key component of its strategy. Uber plans to launch autonomous rides with Waymo in Austin next month and expand to Atlanta over the summer. However, Waymo also operates its own consumer app, offering driverless rides in major markets like San Francisco and, starting next year, Miami. This dual approach means that while Uber and Waymo are partners in some cities, they are competitors in others.
Challenges for Uber and Lyft
The rise of autonomous vehicles poses significant challenges for Uber and its main competitor, Lyft Inc. Both companies currently depend on a vast network of human drivers who are quickly matched with riders through their platforms. The introduction of Tesla’s robotaxis and the broader deployment of Waymo’s autonomous rides could disrupt this model, potentially reducing Uber’s ride volume growth and lowering the commission rates it can charge.
Bloomberg Intelligence has warned that the rollout of Tesla’s robotaxis and Waymo’s expanding services could negatively impact Uber’s market share. As autonomous vehicles become more prevalent, the cost structure of ride-sharing could shift dramatically, with companies like Tesla and Waymo potentially bypassing traditional platforms altogether.
Tesla’s decision to go it alone with its robotaxi plans reflects Musk’s broader vision for the company as a vertically integrated mobility provider. By controlling both the vehicle manufacturing and the ride-hailing service, Tesla could capture a larger share of the revenue generated by autonomous rides. This approach contrasts with Uber’s platform-based model, which relies on partnerships and third-party technology.
Meanwhile, Waymo’s dual strategy of partnering with Uber while also operating its own consumer app highlights the complexities of the AV market. Waymo’s ability to offer driverless rides in key markets like San Francisco and Miami positions it as a formidable competitor to both Uber and Tesla.
As the autonomous vehicle industry continues to evolve, the dynamics between Uber, Tesla, and Waymo will likely become increasingly competitive. While Khosrowshahi has expressed a willingness to collaborate with Tesla, the current trajectory suggests that Uber will need to navigate a landscape where it is both a partner and a competitor to leading AV companies.
For now, Uber’s focus remains on expanding its autonomous ride-sharing services through partnerships like the one with Waymo, while also exploring ways to integrate other AV technologies into its platform. However, the company’s ability to adapt to the shifting competitive landscape will be critical to its long-term success in an industry that is rapidly moving toward autonomy.
As Khosrowshahi noted, “Life is long,” and the future of mobility may yet hold opportunities for collaboration—even among today’s rivals.
