Uber is preparing to build a sprawling autonomous vehicle empire, and CEO Dara Khosrowshahi has made it clear that the company is ready to spend heavily to get there. In prepared remarks ahead of Uber’s earnings call, Khosrowshahi said the ride-hailing giant expects to commit more than $10 billion of capital over the coming years to bring autonomous vehicles to market at scale. The investment signals a major turning point for a company that has long treated self-driving technology as both an existential threat and an enormous opportunity.
“That progress was evident this quarter,” Khosrowshahi said. “AVs are live on Uber in 7 cities, on track for as many as 15 by year-end.” The company’s ambitions go far beyond that. Uber plans to expand AV operations to 28 cities around the world by the end of 2028, a move that would effectively quadruple its autonomous vehicle footprint in less than three years. “Our ambition is straightforward: to become the world’s leading commercialization platform for autonomous vehicles,” he said during the earnings call.
A $10 Billion Bet on Autonomous Vehicles
Uber’s aggressive investment strategy reflects a broader industry reality: autonomous ride-hailing is no longer a distant concept. Waymo has already launched commercial robotaxi services in multiple U.S. cities, and other players are entering the market with their own fleets. For Uber, the stakes are existential. If robotaxi operators can offer cheaper, more convenient rides without human drivers, they could undermine Uber’s core ride-hailing business. That is why the company is pouring billions into partnerships and infrastructure rather than watching from the sidelines.
Some of the investment will go toward building the physical and digital infrastructure needed to support large fleets of autonomous vehicles. Charging stations, maintenance hubs, mapping systems, and fleet management software are all necessary before robotaxis can operate safely at scale. Another significant portion will be used to expand service areas and integrate AV partners into Uber’s platform. Khosrowshahi said Uber has teamed up with more than 30 companies in the effort, ranging from autonomous vehicle developers to infrastructure providers.
One of those partners, Wayve, just secured a permit to begin rolling out a joint robotaxi service in London. The permit represents an important milestone for both companies and signals that Uber is looking well beyond U.S. borders for AV growth. London is one of the most congested and complex cities in the world, making it a challenging but valuable proving ground for autonomous driving technology. If Uber and Wayve can successfully operate robotaxis there, it could pave the way for expansion into other dense European cities.
Uber’s history with autonomous vehicles has not always been smooth. The company previously operated its own self-driving research unit, Uber ATG, which was sold to Aurora Innovation in 2020 after years of development and a fatal pedestrian crash in Tempe, Arizona, in 2018. That incident led to a broad reassessment of Uber’s self-driving program and ultimately brought an end to its in-house AV efforts. Since then, Uber has pivoted to a partnership model, working with multiple AV developers rather than trying to build everything itself. The new $10 billion commitment is a continuation of that strategy, but on a much larger scale.
Lessons From AI’s Public Backlash
Despite the enthusiasm for autonomous vehicles, Khosrowshahi made a point of saying that robotaxi proliferation should be slower and “more deliberate” than the rapid trajectory the broader AI industry has followed in recent years. He argued that this cautious approach is better for the industry and for the public. “While AVs have been incredible in the markets in which we’ve introduced them, there also have been, you know, they’ve had their fair share of issues,” he said.
Khosrowshahi’s comments come as the AI industry faces intense scrutiny over its rapid deployment of data centers and other infrastructure. Communities across the United States and Europe have complained about the negative health, economic, environmental, and social impact of massive data center construction. The use of non-disclosure agreements, or NDAs, between AI companies and local governments has further fueled public anger, as residents say they were kept in the dark about projects that would profoundly affect their neighborhoods.
“We see sometimes the result of trying to go too fast, and some of these AI companies with data centers, they were kind of pushing through, you could argue, too quickly with NDAs, et cetera, and there’s been a huge public blowback against it,” Khosrowshahi said. He argued that autonomous vehicle companies should learn from that backlash and engage with communities before deploying technology at scale. “You need to have smart regulation and dialogue with our shareholders, so you can actually enable innovation going forward, and we can kind of drive AV regulation in a way that’s sustainable, that doesn’t have the same blowback that you’re seeing in AI,” he added.
This is not just rhetoric. Uber has experienced firsthand how quickly public sentiment can turn against new transportation technologies. The company has fought regulatory battles in cities around the world over driver pay, safety, and labor practices. More recently, it has seen pushback over surge pricing, congestion, and the treatment of gig workers. Khosrowshahi’s emphasis on “smart regulation” suggests that Uber is trying to position itself as a cooperative player in the AV era, rather than a disruptive force that tramples on local concerns.
Regulatory and Competitive Tensions
For all the talk of collaboration, Uber is currently locked in a regulatory fight in Washington, D.C. The company is strictly opposing a bill that would allow robotaxi operations in the nation’s capital. The bill is supported by Waymo, Uber’s partner and competitor, which argues that autonomous vehicles could improve safety and accessibility in the city. Uber’s opposition is rooted in a different concern: robotaxis would displace human drivers who work on ride-hailing platforms like its own.
The D.C. fight highlights a growing tension between Uber and Waymo. The two companies have an exclusive partnership for robotaxi services in several American cities, including Austin and Atlanta, but recent reports point toward a rift. According to those reports, Waymo is preparing to end the partnership in January 2028 and operate robotaxis through its own app instead. Such a break-up would strip Uber of a key AV partner and intensify competition in the ride-hailing market.
On the earnings call, Khosrowshahi tried to address those concerns without feeding speculation. “Waymo is a very, very important partner of ours, and we continue to operate in Austin and Atlanta,” he said. “At the same time, we want to make sure that we’re not dependent on one partner, and we’re absolutely seeing a plethora of newer players in the AV ecosystem.”
That statement reveals a key element of Uber’s AV strategy: diversification. By working with more than 30 partners, Uber hopes to avoid being held hostage by any single technology developer. If Waymo eventually leaves the platform, Uber could quickly replace it with other robotaxi providers. The company is also building its own AV infrastructure and software tools, giving it more leverage in negotiations and reducing the risk of losing critical capacity.
Still, the looming break-up with Waymo would be a significant blow. Waymo is widely considered one of the most advanced autonomous vehicle companies in the world, with a strong safety record in recent years and a growing fleet of robotaxis. Losing access to Waymo’s vehicles would force Uber to rely on less proven partners, at least in the short term. That could give Waymo a major advantage in the race to dominate robotaxi ride-hailing, especially if Waymo launches its own consumer app with a seamless user experience.
Uber’s plan to expand to 28 cities by 2028 also depends on regulatory approval in each market. Autonomous vehicle regulations are still evolving, and many jurisdictions are moving cautiously after a series of high-profile incidents involving robotaxis. Khosrowshahi’s call for “smart regulation” is partly a plea to policymakers to create clear, consistent rules that allow AV companies to operate without facing constant legal uncertainty. But it is also a recognition that public trust must be earned through transparency and accountability.
The stakes are enormous. Autonomous vehicles have the potential to lower transportation costs, reduce traffic accidents, and provide mobility to people who cannot drive. But they also threaten millions of driving jobs and could reshape cities in unpredictable ways. Uber’s challenge is to capture the benefits of autonomy while convincing the public that it will not repeat the mistakes of the AI data center boom.
As the AV industry moves forward, the relationship between Uber and Waymo will be one of the most closely watched storylines. Their partnership has allowed both companies to test autonomous ride-hailing in real-world conditions, but their competing interests are becoming harder to ignore. For now, Khosrowshahi described Waymo as a “very, very important partner” while also insisting that Uber will keep multiple options open. Whether that partnership survives until 2028 or dissolves earlier, the company’s message is clear: robotaxis are coming, but the rollout will be managed carefully.
Source:Gizmodo News