Uber is a rival. That they sort of suck at functioning as a consequence of their culture doesn't change the fact that the entire bet is that they get to a dominant position in self-driving cars.
The current human-driver-driven model is a stopgap; they lose a lot of other people's money on every ride. Possible outcomes:
- Uber achieves a credible 1st-3rd place dominance in self-driving vehicles. Investors, frat boys win.
- Uber doesn't. Keeps human drivers, prices surge, Uber tanks.
- Uber doesn't. Contracts with Waymo or someone else for cars. Survives, but doesn't have much more than a crappy brand-name. Joins the ranks beside Yellow Cab.
- Uber implodes in a puff lawsuits, acrimony and skunked beer kegs. Sucks for the investors, but, eh. Uber is a cancer.