Uber Technologies Inc. is pivoting its business strategy with a $10 billion investment in autonomous vehicles and robotaxis. The company will purchase thousands of driverless cars and acquire stakes in vehicle development firms. This move shifts Uber away from its traditional asset-light, gig-economy business model.
The strategy responds directly to growing competition from Waymo and Tesla in the driverless transportation sector. Uber aims to launch robotaxi services in at least 28 cities by 2028.
The capital allocation includes approximately $2.5 billion for equity stakes. Over $7.5 billion is dedicated to purchasing robotaxi fleets.