Uber CEO Welcomes Tesla's Robotaxi Entry, Emphasizing Collaboration in Trillion-Dollar Autonomous Driving Market

Uber CEO Says Tesla Can Either Be A Competitor Or A Partner; There Is No "Winner Takes All" When It Comes To Trillion Dollar TAMs

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. Uber CEO, Dara Khosrowshahi, believes Tesla and Uber can co-exist in the autonomous driving sphere, which is unlikely to experience "winner takes all" dynamics, given the size of the emerging market opportunity. For the benefit of those who might not be aware, Uber sold its self-driving unit to Aurora in 2020, taking a stake in the autonomous truck-focused startup in return. In 2021, Uber partnered with Motional, a JV between Aptiv and Hyundai that is working on autonomous mobility solutions, where Motional's all-electric IONIQ 5 robotaxis operate on the Uber network. More recently, Uber inked a partnership agreement with Nuro and Lucid Group, where the former's autonomy stack would be deployed on EVs sourced from the latter, with the resulting robotaxi service operating on Uber's network. Of course, Tesla has just launched its bespoke robotaxi service in a geofenced area of Austin, Texas, replete with an employee stationed in the front passenger seat and supported by a dedicated team of teleoperators, who are mandated to take over in case of an emergency. The EV giant has also initiated a manned ride-sharing service in the Bay Area, in lieu of specific robotaxi service permits. This brings us to the core of today's topic. Khosrowshahi, while speaking on CNBC, has said that Uber and Tesla can either be partners or competitors in the robotaxi sphere, going on to opine that the segment will likely not witness "winner takes all" dynamics. Of course, NVIDIA's example largely nullifies at least a part of this thesis, as the GPU maker currently commands the lion's share of the AI silicon segment, and is likely to remain the dominant player for the foreseeable future. So too might Tesla dominate the robotaxi sphere. Bear in mind that the US rideshare market is valued at just around $58 billion right now, but is expected to swell to $336 billion by 2030. Goldman Sachs' Mark Delaney believes that robotaxis will be able to capture just $7 billion (or 8 percent of total bookings) of the 2030 pie. Eventually, however, the sector may very well grow to represent a Total Addressable Market (TAM) worth trillions of dollars.

Uber CEO Welcomes Tesla's Robotaxi Entry, But Says There Will Be No Winner-Take-All: 'Could Be A Competitor, Could Be A Partner' - Baidu (NASDAQ:BIDU), Amazon.com (NASDAQ:AMZN)

Uber Technologies Inc. UBER CEO Dara Khosrowshahi said Tesla Inc.'s TSLA foray into robotaxis is a positive step for the autonomous driving industry, noting that the future market is large enough for multiple players to succeed. Khosrowshahi: Tesla's Entry Validates The Market In a CNBC "Squawk Box" interview on Wednesday following Uber's earnings release, Khosrowshahi addressed Tesla's robotaxi rollout in Austin, calling it a welcome development in a growing space. "It [Tesla] could be a competitor, could be a partner," Khosrowshahi said, adding, "When you're talking about trillion-dollar TAMs [Total Addressable Markets], there will be no winner-take-all in this marketplace." He praised Tesla for its measured approach, saying they're taking their time and making sure they're expanding safely. "We've always believed that the potential in self-driving is for these cars to be superhuman in terms of safety." Also Read: WeRide And Uber Expand Robotaxi Reach In Abu Dhabi Uber Expands Autonomous Partnerships Worldwide Khosrowshahi also highlighted Uber's growing partnerships in autonomous driving, which include collaborations with Alphabet Inc.'s GOOG GOOGL Waymo in Austin and Atlanta, WeRide in Abu Dhabi and Wave in the U.K. "The average Waymo in Atlanta is busier than 99% of drivers in the city," he reiterated, underscoring early momentum in robotaxi adoption. Uber is also working with Baidu Inc. BIDU outside the U.S. Robotaxi Race Heats Up In The US Tesla officially launched its Robotaxi pilot in Austin in June, deploying over 10 Model Y vehicles in a limited rollout aimed at influencers and early adopters. The service mirrors ride-hailing apps like Uber, but features full self-driving capabilities. Other players, such as Waymo and Amazon.com, Inc. AMZN-backed Zoox, are also ramping up operations. Despite regulatory scrutiny -- particularly around Tesla's Full Self-Driving performance -- Khosrowshahi remains optimistic. "All of this competition in autonomous is going to create safer streets, and we are going to be a big part of that," he said. Uber Reports Q2 Earnings Beating Estimates Uber announced its financial results for the fiscal second quarter of 2025 on Wednesday, posting revenue of $12.65 billion -- an 18% increase compared to the same period last year and above the consensus estimate of $12.46 billion. The company also delivered an adjusted earnings per share of 63 cents, slightly surpassing the expected 62 cents. By segment, Mobility revenue climbed 19% year-over-year to $7.3 billion, Delivery rose 25% to $4.1 billion, while Freight revenue slipped 1% to $1.3 billion. Price Action: TSMC shares dipped 0.19% in regular trading and edged down another 0.24% after hours, closing at $89.01, per Benzinga Pro. According to Benzinga's Edge Stock Rankings, UBER maintains strong momentum across short, medium and long-term timeframes. Further performance details can be found here. Read Next: Bill Gates Commits Majority Of $200 Billion Foundation Budget To Africa Over Next 20 Years Amid Trump's Massive USAID Cuts Photo Courtesy: Frederic Legrand - COMEO on Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMZNAmazon.com Inc$221.553.65%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum60.83Growth86.94Quality62.64Value52.18Price TrendShortMediumLongOverviewBIDUBaidu Inc$86.751.04%GOOGAlphabet Inc$196.850.78%GOOGLAlphabet Inc$196.000.68%TSLATesla Inc$319.993.65%UBERUber Technologies Inc$89.01-0.43%Market News and Data brought to you by Benzinga APIs