Uber Looks to a Driverless Future
How much money will Uber save when they convert their cars to driverless technology?
According to Uber’s most recent filings there were 3.9 million worldwide Uber drivers. The average Uber driver saw an income of $364 per month. If Uber is eventually able to transition all of their cars to driverless technology on the new 5G network, a rough back of the envelope calculation shows that over $1.4 billion of monthly expenses that go towards the cost of the drivers’ labor would essentially vanish. Google is currently the market leader in driverless technology, as their Waymo division has been operating their deep learning on driving for longer than any other company and their vehicles have driven the most miles.
But, from Ford to Volvo to regional trucking companies, the market for self driving innovation has ballooned in recent years.
Yes, there would need to be significant capital investment and leases of new cars; the wall street has shown quite the appetite for supplying capital towards automotive innovations. Elon Musk just showed the appetite for tesla shares as his recent capital fundraising was oversubscribed.
Furthermore, Uber would have a much easier time finding both debt and equity for the capital needed to finance all of the cars for their driverless network, as they will be hard assets backing the loans and equity.
With the potential to free up 17+ billion of expenses and continue to grow globally, Uber’s current valuation of 62 billion might have significant room to grow. I, however, will stick with my artificial intelligence and investing in the aggregate.
Written by Alexander Fleiss & Edited by Derek Chiang