Uber CEO Doubts Tesla’s Robotaxi Dream: ‘It’s Not Going to Work’

2024-08-31

Uber CEO, Dara Khosrowshahi, doubts Elon Musk’s plan for private “robotaxis” will work. “It’s taken us 15 years and tens of billions of dollars…” Why would owners want to use their cars as self-driving taxis? 

The Promise of a Robotaxi 

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Tesla’s CEO, Elon Musk, was in a six-year legal case to win his $56 billion pay package, which was approved earlier this year. During this time, it has been reported that the company has also given the public hope for a new taxi system featuring the “rideshare service Robotaxi.”

Robotaxi Supposed Launch Date 

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According to IOT World, Tesla announced that its project would be launched on August 8 of this year. The publication noted that the company’s statement posted online has generated over one million views. 

Robotaxi Replacing Affordable-EV Project?

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Some people suspected Tesla would “replace” the low-cost EV project that was said to retail at about $25,00  with the Robotaxi. However, Tesla has never confirmed scrapping the low-cost EV project development or replacing it with the Robotaxi project. 

Tesla Owners Can Make Extra Money

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Tesla said the Robotaxi was a concept that Tesla owners would benefit from should they use their cars as self-driving taxi services. The EV manufacturer said owners would benefit by earning up to “$30,000 a year.” 

How Does the Concept Work?

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Tesla owners could rent their vehicle out as a rideshare taxi when they’re not using it. Some people see the concept as a good opportunity to make extra income, but many Tesla owners are reportedly good earners. Some reports allege Telsa owners to average $150,000 a year in salary. 

It Won’t Work

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As fascinating as that sounds, the Uber CEO doesn’t agree. Khosrowshahi said that if the car owners want to use their Tesla for their private use, it would probably be at “the same times that rideshare peaks.”

Not Everyone Would Be Comfortable 

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Khosrowshahi also added that there is potential for many things to go wrong and that he was sure that the owner of a Tesla or any other car brand wouldn’t feel comfortable “having a complete stranger ride in the car.”

Tesla’s Concept For Rideshare Taxis Not Viable

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May Mobility CEO and Co-Founder Edwin Olson mentioned, “Tesla owners don’t want to be ‘landlords’ of their cars.” Similarly to Uber’s CEO, he also believes the concept, as per Tesla, was just “not viable.” 

Maybe a Fleet Would Work

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On the contrary, Olson thinks the concept might work if Tesla was willing to dedicate a fleet of taxis to the course and not have it be the private owner’s responsibility. 

Split on Excitement 

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The public tends to be split on the topic of autonomous driving. However, the Tesla team, including their Senior Manageress for Used Cars at Tesla, Rosalie Nathans, has more enthusiasm. 

It Should Be Easy To Use

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In the video, Nathans portrays how “easy” the concept is. The video also showcases the words “coming soon video.” She calls the Robotaxi and adjusts settings like the radio and interior temperature. Furthermore, plotting the destination is simple, and everything is done on her phone. 

Why Autonomous Taxis?

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As technology and the world gears forward to the future of sustainability, robo or autonomous taxis may play an important role. 

Safer Transport?

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Autonomous vehicles are reportedly “safer” because there are no chances for “human error.” According to Future Transport, studies show that most motor vehicle accidents are caused due to human error. 

No Carbon Gas

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Autonomous cars are EVs, and thus there’s no need for gas or filling stations with these taxis. Since they are battery-operated, the car emits zero CO2, and owners save by not having to buy gas.   

“It’s Cost Effective”

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Future Transport also notes that self-driving taxis would eliminate the cost of paying the driver a salary. In this way, the company can be safely without manual human labor. 

It Doesn’t Happen Overnight

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Dara Khosrowshahi confirmed that it’s taken Uber “15 years,” and they’ve spent billions of dollars to create a taxi system “that work for both the rider and the driver.” “We had to learn to build out a system that’s able to make everything work…” he added.

Robotic Taxis Are Pushed in China 

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According to the Business Standard, China has a number of robot taxis operating, with some being “aggressively tested.” There are reportedly fewer “suspensions following accidents” in China compared to the United States. 

Almost 20 Cities in China Testing Robo-Taxis

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Reports suggest there are nearly 20 Chinese cities testing the robo-taxi and robo-bus concept. GM has recently resumed their testing in Arizona following the greenlight after crash suspension, CBS reported. 

Job Insecurity for Taxi Drivers

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While autonomous taxis are a growing future solution for transportation, they have brought about many concerns regarding job security among taxi drivers.

No Need for Human Taxi Drivers

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Once the systems are mastered and fully functioning to perfection, why wouldn’t companies want to save and cut on having to pay salaries?

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