Uber Technologies Inc. (NYSE: UBER), chief executive Dara Kosrowshahi, agrees that self-driving technologies could bring uncertainty to the ride hailing giant.
In an interview with CNBC on Wednesday, Khosrowshahi said that the autonomous vehicles market is also a great opportunity for his company. Khosrowshahi, CEO of Khosrowshahi Automotive Group, expects that autonomous vehicles will eventually become a market worth trillions in the US.
Uber is at the core of this TAM. In fact, without Uber Technologies Inc., self-driving car technology might not fully achieve its vision, as he said on “Squawk On The Street”.
Uber’s stock fell nearly 10% today after it missed earnings expectations for the fiscal fourth quarter, and offered what could be called a muted Q1 guidance.
Uber is a key player in the AV market.
Uber’s chief executive Dara Khorowshahi said that commercialising autonomous vehicles would be difficult and required four key ingredients.
- Self-driving cars are a technology that regulators must begin to accept.
- Safety record of autonomous tech should be several times higher than that of humans
- OEMs need to expand their capacity in order to produce mass-produced self-driving vehicles at affordable prices
- The cost of building autonomous vehicles means that they must be used to their maximum potential.
Uber’s collaboration with the audiovisual industry is the only thing that will allow the US to commercialize all four.
Uber’s stock has fallen more than 25 percent from its October record high.
Uber announces interest in robotaxi services for Austin
The ride-hailing company also invited users to sign up for its “interest lists” in Austin, Texas, regarding the robotaxi service that will be launched by Waymo.
The first autonomous ride in Austin will be available to users who have registered their interest.
By joining the list, they will be kept up to date and have a better chance of matching with a Waymo autonomous vehicle when it launches.
Uber’s mobility and delivery gross bookings increased by 18% in the fourth-quarter.
New York-listed firm generates $11,96 billion revenue, well above the $11,77 billion forecast by experts.
Uber Technologies shares do not pay dividends at the moment.
When the stock price drops after earnings, should you consider buying Uber?
Mark Mahaney, Evercore ISI analyst, shares Dara Khosrowshahi’s views on autonomous vehicles and what they could mean to Uber Technologies Inc.
In a report, the author noted that Uber will become a “long term positive derivative”, as it becomes “the ultimate demand aggregator” of self-driving vehicles.
Wall Street’s consensus rating for Uber stock was “buy” before the earnings report.
Analysts expect UBER’s price to rise up to $89, which would indicate a potential gain of about 40% from the current level.
The post Uber CEO warns that self-driving vehicles need Uber in order to achieve their full potential could be updated as new developments unfold.
This site is for entertainment only. Click here to read more
