Uber is spending $10 billion to deploy 120,000 robotaxis across 15 cities

Uber is investing $10 billion over the next few years to deploy 120,000 robotaxis across 15 cities, positioning itself as a major player in the autonomous vehicle market alongside competitors like Waymo and Tesla. The company's CEO, Dara Khosrowshahi, claims this spending is made possible by strong cash flow from its core business, which generated $2.8 billion in free cash flow in the second quarter alone.

Uber's approach differs from traditional autonomous vehicle development, as it aims to become a platform connecting multiple AV technologies to riders, rather than building its own self-driving system. The company has shut down its autonomous vehicle program but is now working with external AV startups, providing them with fleets and equity stakes.

Notably, Uber secured a permit for Wayve, a UK-based autonomous driving company, to launch a commercial robotaxi service with a supervising driver behind the wheel. This marks the UK's first license for AV technology to operate on public roads. Despite some investors being concerned about how robotaxis could disrupt Uber's core ride-hailing business, the company remains confident in its ability to leverage its extensive customer base and routing capabilities to remain competitive in the evolving autonomous vehicle landscape.