Major tech and automotive companies like Alphabet, Amazon, and Tesla are developing automated-driving systems they plan to integrate into robotaxi services, among other applications. So far, only Alphabet, through its Waymo subsidiary, and Aptiv, through a partnership with Lyft, are offering rides in self-driving cars to paying customers in the US. Both operate within the confines of a single metropolitan area.
During those early stages, the size of Uber and Lyft's ride-hailing networks will give them an advantage, Munster said. As the ride-hailing companies gradually bring autonomous vehicles onto their own networks, their profit margins will rise. But once competitors have enough self-driving cars on the road to offer wait times that match those of Uber and Lyft, that advantage will start to fade, Munster said.
At that point, "all that Uber and Lyft are left with is their brand," he said. The strength of those brands whose will be challenged by household names like Amazon and Tesla, he"We are confident in our position in the self-driving market and in what our rideshare expertise gives us," a Lyft representative said. The dispatching tech that matches riders with drivers and sets prices is cost- and labor-intensive to create and hone, he said.
"The early years of autonomy will bode well for their bottom line growth," Munster wrote in June. "The long-term, however, will likely prove to be more challenging." Are you a current or former employee of Uber or Lyft? Do you have an opinion about what it's like to work there? Contact this reporter at
Right as California rules they have to give benefits to their drivers.
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