After a fatal accident with its own AV program, Uber pivoted. Instead of building cars, its long-term strategy is to be the essential demand-generation platform for every AV manufacturer, aiming to maximize the utilization and revenue of any "box with wheels" from any company.

As the operational cost of autonomous vehicles plummets, the business model will shift from fare-based revenue to advertising. By leveraging user data and AI like Grok, the car becomes a platform for hyper-targeted ads and commerce recommendations. This could eventually make rides free for consumers willing to engage with advertisers.

The labor force for teleoperated robots could be sourced from the gig economy. Ride-share drivers, for instance, could operate robots during their downtime between rides, creating a flexible, scalable, and cost-effective pool of on-demand human operators.

While many see autonomous vehicles as a threat to Uber's ride-hailing, its delivery segment may be more important and defensible. Automating last-mile delivery of goods from varied locations is significantly more complex and less economical than automating passenger transport, providing a durable moat.

The convergence of autonomous, shared, and electric mobility will drive the marginal cost of travel towards zero, resembling a utility like electricity or water. This shift will fundamentally restructure the auto industry, making personal car ownership a "nostalgic privilege" rather than a daily necessity for most people.

The transition to AVs won't be a sudden replacement of human drivers. Uber's CEO argues that for the next two decades, a hybrid network where humans and AVs coexist will be a more efficient and effective solution, allowing for a responsible transition while serving diverse customer preferences.

Uber has no intention of owning massive AV fleets. Instead, it plans to prove the revenue model for robo-taxis and then enable financial institutions and private equity firms to purchase and operate the fleets on its platform, similar to how REITs own hotels managed by Marriott.

CEO David Risher claims data refutes the idea that AVs displace human drivers. Instead, Lyft's growth is faster in cities with AVs like San Francisco and Phoenix. He suggests AVs "oxygenate the market," expanding overall demand for ridesharing rather than just cannibalizing existing rides.

Dominant aggregator platforms are often misjudged as being vulnerable to technological disruption (e.g., Uber vs. robo-taxis). Their real strength lies in their network, allowing them to integrate and offer new technologies from various providers, thus becoming beneficiaries rather than victims of innovation.