Uber CEO Raises Doubts Over Elon Musk’s Tesla Robotaxi Scheme

August 10, 2024 – The CEO of ride-hailing giant Uber, Dara Khosrowshahi, has expressed doubts about Elon Musk’s vision for a Robotaxi service, suggesting that there may be significant issues with the concept.

Musk’s plan involves Tesla owners renting out their vehicles as self-driving taxis when not in use, creating a fleet of private autonomous taxis that can be summoned with a click of a button. According to Musk, Tesla owners could potentially earn up to $30,000 per year through this scheme.

However, Khosrowshahi questioned whether ordinary Tesla owners would be willing to let complete strangers ride in their cars. He also raised concerns about whether a Robotaxi service would be able to meet demand during peak hours, noting that car owners might need their vehicles precisely when demand for taxis is highest.

During an appearance on the “Logan Bartlett Show” on Friday, Khosrowshahi also promoted Uber’s ability to quickly adjust its pool of part-time drivers to accommodate demand during busy periods or major events.

Furthermore, he believed that Musk might have underestimated certain crucial aspects of the business, such as the difference between manufacturing a $50,000 vehicle and managing over 30 million transactions per day. Khosrowshahi also pointed out challenges related to customer service, like handling situations where passengers become ill in the car or lose their belongings.

Interestingly, Khosrowshahi extended an olive branch to Musk, suggesting that Tesla could manufacture autonomous vehicles and collaborate with Uber to convert them into a ride-hailing service. He emphasized that Uber has invested over 15 years and billions of dollars into perfecting its service and is willing to share its expertise with partners like Tesla.

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