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Uber sells self-driving unit in deal that will push Aurora’s valuation to $10B

techcrunch.com

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Re: Uber sells self-driving unit in deal that will push Aurora’s valuation to $10B

#11

Post by beisner »

thesimon wrote: post #6

Wasn't Uber's whole money losing strategy based on the vision that one day they'll use their self-driving cars to get the driving done for cheaper?

They’ll have a major share in Aurora after the fact. They just are focusing on their core competencies, I assume. To compete in the self driving space, you need to have 1) a crap ton of money and 2) the patience to wait 10 years before you see any ROI. Uber is not structured to do that this late in the game. They’ll probably get a preferred partnership for licensing the tech once it rolls out, if Uber still exists in 10 years.

Re: Uber sells self-driving unit in deal that will push Aurora’s valuation to $10B

#12

Post by paxys »

thesimon wrote: post #6

Wasn't Uber's whole money losing strategy based on the vision that one day they'll use their self-driving cars to get the driving done for cheaper?

That claim was infinitely repeated on internet message boards but never acknowledged by the company or taken seriously in the industry or by investors. That entire division was an expensive moonshot. Uber's core strategy and valuation have always been rooted in being a taxi company with human drivers.

Re: Uber sells self-driving unit in deal that will push Aurora’s valuation to $10B

#13

Post by _fat_santa »

thesimon wrote: post #6

Wasn't Uber's whole money losing strategy based on the vision that one day they'll use their self-driving cars to get the driving done for cheaper?

The headline is a little decieving. Though Uber sold their self-driving division to Aurora, Uber is taking a stake in the company so it seems like a partnership.

Re: Uber sells self-driving unit in deal that will push Aurora’s valuation to $10B

#16

Post by redis_mlc »

ghaff wrote: post #7
thesimon wrote: post #6

Wasn't Uber's whole money losing strategy based on the vision that one day they'll use their self-driving cars to get the driving done for cheaper?

Was there anyone who actually still believed that story? I mean, it should have been pretty obvious for at least a few years but did someone still believe it? (Less snarkily, they do still have a financial interest but yeah.)

It was an investor narrative, similar to most of the stuff you read about WeWork. Companies need a topic to write PR stories about periodically.

Re: Uber sells self-driving unit in deal that will push Aurora’s valuation to $10B

#17

Post by necubi »

thesimon wrote: post #6

Wasn't Uber's whole money losing strategy based on the vision that one day they'll use their self-driving cars to get the driving done for cheaper?

No, that was never the strategy, no matter how many times people on HN claimed it was. Both Uber and Lyft are aiming for profitability next year with human drivers.

(Disclaimer, I work for Lyft but this has been said in public many, many times by both companies.)

Re: Uber sells self-driving unit in deal that will push Aurora’s valuation to $10B

#19

Post by zerocrates »

beisner wrote: post #11
thesimon wrote: post #6

Wasn't Uber's whole money losing strategy based on the vision that one day they'll use their self-driving cars to get the driving done for cheaper?

They’ll have a major share in Aurora after the fact. They just are focusing on their core competencies, I assume. To compete in the self driving space, you need to have 1) a crap ton of money and 2) the patience to wait 10 years before you see any ROI. Uber is not structured to do that this late in the game. They’ll probably get a preferred partnership for licensing the tech once it rolls out, if Uber still exists in…

Do they get ROI on rides or Eats? I was under the impression they were still pretty substantially subsidizing prices on those, though maybe that's just out of date information.

Re: Uber sells self-driving unit in deal that will push Aurora’s valuation to $10B

#20

Post by esotericimpl »

necubi wrote: post #17
thesimon wrote: post #6

Wasn't Uber's whole money losing strategy based on the vision that one day they'll use their self-driving cars to get the driving done for cheaper?

No, that was never the strategy, no matter how many times people on HN claimed it was. Both Uber and Lyft are aiming for profitability next year with human drivers. (Disclaimer, I work for Lyft but this has been said in public many, many times by both companies.)

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