Uber Seeks Funding for Major Robotaxi Expansion

Uber CEO Dara Khosrowshahi expressed optimism about Tesla's entry into the robotaxi market, emphasizing that the autonomous driving space is large enough for multiple players to succeed and that Tesla could be either a competitor or a partner. Uber is actively expanding its robotaxi presence through partnerships with companies like Alphabet's Waymo, Volkswagen, Lucid, and Baidu, and is planning further growth supported by talks with private equity firms and banks to secure financing for the business. The company is exploring three robotaxi business models involving fixed-rate payments to vehicle owners, revenue sharing with fleet operators, and owning vehicles while licensing self-driving software. Uber plans to use a modest portion of its significant annual cash flow and potentially sell minority stakes to fund its robotaxi expansion. Despite regulatory scrutiny and skepticism about the technology’s mass adoption, Uber's recent financial performance, including a 17% increase in gross bookings and a strong revenue beat, underpins confidence in the profitability potential of autonomous taxis. Khosrowshahi highlighted that competition in the autonomous vehicle industry will enhance safety and that Uber aims to be a major participant in this evolving market.