Uber CEO Eyes Tesla Robotaxi Partnership: Smart Move or Risky Alliance?

Here’s the buzz. Uber’s boss, Dara Khosrowshahi, seems pretty keen on teaming up with Tesla for robotaxis. No kidding!

Last month, Elon Musk (you know, the Tesla guy) mentioned Tesla’s self-driving taxi service could launch this June. And Khosrowshahi’s reaction? Not competition. Partnership!

Think about it. Instead of fighting Tesla, Uber wants to join forces. Khosrowshahi even told tech analyst Ben Thompson, “Listen, no one wants to compete against Tesla or Elon if you can help it. ” True, right?

Why Uber Needs Tesla

Here’s the deal. Khosrowshahi thinks Tesla could make even more money by letting Uber users hop into their robotaxis through the Uber app. More customers, more rides, more cash.

Uber moves people. Like, a lot of people. Their latest report shows they handle about 33 million trips every single day. Imagine Tesla tapping into that!

Khosrowshahi put it simply: “That is going to create much, much more revenue. ” Makes sense.

Tesla Already Has a Foot in the Door

Did you know that there are already around 150,000 Teslas on the Uber network? Adding robotaxis would just build on that presence. Easy peasy.

Not a New Idea

This isn’t the first time Khosrowshahi has hinted at a Tesla partnership. Last year, he said he’d “love” to bring Tesla’s robotaxis to Uber when the time was right. He’s also been working with Waymo and Cruise on similar projects.

Uber already has robotaxis in some areas, like Phoenix and Austin. But they gave up on building their own self-driving cars a few years ago.

What About the Drivers?

Here’s the slightly scary part. Khosrowshahi told the Wall Street Journal that he thinks self-driving cars will take over Uber rides in the next 15 to 20 years. Meaning? Human drivers could be out of a job.

Uber’s Turnaround Story

Khosrowshahi took over Uber in 2017. He turned things around, leading the company to its first annual operating profit in 2023. From a loss of $1. 8 billion in 2022 to a profit of $2. 8 billion in 2024? Not bad at all.