You know there’s some serious trouble afoot anytime a once high-flying corporation trots out the old “refocusing on core businesses” malarkey. That goes double when said high-flyer turns out to be a Silicon Valley darling usually forgiven for burning through money like Charlie Sheen just out of rehab. They must — and please pardon the insufferable pun — be in über trouble.
The divestment of its ATG division — which was working with Volvo and Toyota to develop robotic taxis — is particularly troubling. Uber has made no secret of the fact that its biggest cost is the manpower — estimated, according to Eric Spiegelman, LA’s taxi commissioner, to account for 90 per cent of the expense of any mobility business — required to chauffeur ride-hailers to their destinations.
RELATED Uber asks U.S. state governors to give the COVID-19 vaccine to its drivers first Motor Mouth: Is Uber doomed? This seemingly rapid comeuppance is the result of — no surprise here — the coronavirus pandemic. Like all businesses relying on personal interaction, Uber’s ride-hailing division has been strangled by the lockdowns of such establishments as nightclubs, bars and restaurants, and the fear of contagion — being stuck in a confined space with limited ventilation.
The question, then, is whether Uber can survive that long.
drivingdotca Uber is somehow worse than the taxi service in this city.