How Uber Plans to Put Its Own Drivers Out of Business

Advertisement
By Abha Bhattarai, The Washington Post | Updated: 24 August 2016 15:30 IST
Highlights
  • The fleet of 100 new vehicles will come with tablets in the back seats
  • The idea is to eventually replace human drivers with automated systems
  • Uber last year said its drivers make about $19 an hour

Uber spent years amassing an army of 1 million drivers around the world. Now its CEO says it wants to "wean" customers off of those very drivers.

Beginning this month, the ride-sharing company will begin deploying self-driving cars - equipped with cameras, lasers and GPS systems - to pick up passengers in downtown Pittsburgh, Bloomberg Businessweek reports. The custom Volvo SUVs will offer free introductory rides and, at least for now, be supervised by engineers in the driver's seat.

Advertisement

The idea, the company says, is to eventually replace human drivers with automated systems. The fleet of 100 new vehicles, will come with tablets in the back seats to tell customers what's happening and to discourage them from interacting with their drivers.

"The goal is to wean us off of having drivers in the car, so we don't want the public talking to our safety drivers," Travis Krikorian, Uber's co-founder and chief executive, told Businessweek.

Advertisement

That could be a problem for the company's drivers, many of whom use the ride-sharing service to make ends meet.

Since its founding in San Francisco seven years ago, Uber has given rise to a new opportunity for independent contractors. But in recent months, the ride-sharing company has slashed fares and begun taking a larger portion of revenue from its drivers, amounting to less take-home pay for those behind the wheel.

Advertisement

Uber last year said its drivers make about $19 an hour - but by the time taxes, insurance costs, gas and car maintenance are factored in, that figure is whittled down to about $10.50 per hour, according to a Washington Post analysis.

But could Uber's driverless fleet also be bad for car companies? The company's CEO says yes, according to Businessweek:

Advertisement

In the long run, Kalanick says, prices will fall so low that the per-mile cost of travel, even for long trips in rural areas, will be cheaper in a driverless Uber than in a private car. "That could be seen as a threat," says Volvo Cars CEO Hakan Samuelsson. "We see it as an opportunity."

© 2016 The Washington Post

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Uber, App, Driverless, Autonomous
Advertisement

Related Stories

Popular Mobile Brands
  1. Redmi 17C 5G Review: Same Phone, New Price
  1. Oppo May Expand Product Lineup With New Foldable Phone and Gimbal Camera
  2. Best Smartphones With 512GB Storage in India: Samsung Galaxy S26 Ultra, iPhone 18 Pro Max, More
  3. Xiaomi 18 Pro, Redmi Note 17 Aura India Launch Tipped for January 2027; Xiaomi 18T Could Arrive Later
  4. Bitcoin Firm Nakamoto Extends Debt Deal as Stock Valuation Takes a Hit
  5. Samsung Galaxy A18 5G Spotted on Bluetooth SIG Ahead of Expected Launch
  6. South Korea’s Upbit Pauses OSMO Deposits and Withdrawals After Network Failure
  7. Meta Muse AI Can Now Make Phone Calls to Businesses for Paid Subscribers
  8. Claude Meetings Launched in Beta for Team and Enterprise Subscribers: Features, Availability
  9. Redmi Note 18 Series Phone Reportedly Spotted on 3C Certification Site; Charging Speed Tipped
  10. Vivo X500 Series Camera Configuration and Colour Options Revealed Ahead of India Launch
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.