Gary Black Thinks Uber 'Benefits Most' As Autonomous Driving Technology Develops, Says Tesla Could Undercut Other Ride-Hailing Companies By 'Mastering Unsupervised Autonomy'
Gary Black, Managing Director of The Future Fund LLC, believes Uber Technologies Inc. will benefit significantly from advancements in autonomous driving technology. He stated that Uber could reduce ridership costs by eliminating drivers, potentially lowering prices by half and expanding its total addressable market. Black also commented on Tesla's potential to undercut competitors by mastering unsupervised autonomy, although he noted the need for near-perfect driving efficacy. His remarks follow Uber's recent partnerships with Lucid Group and Waymo to enhance its robotaxi services.
The Future Fund LLC's Managing Director, Gary Black, thinks Uber Technologies Inc. UBER can benefit from the rapid advancement in autonomous driving technology.
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What Happened: "Uber continues to outperform Tesla as the autonomous race heats up," the investor said in a post on social media platform X on Thursday.
The investor said that Uber benefits the most with the development of autonomous driving technology as it could allow the company to "eliminate the cost of a driver from the cost of ridership, which could lower the price by half and significantly expand TAM [Total addressable market]."
The investor also shared his thoughts on Tesla Inc.'s TSLA Robotaxi efforts. "Mastering unsupervised autonomy could allow it [Tesla] to expand its robotaxi fleet," Black said before adding that Elon Musk's EV giant possesses the scale to "undercut all ride-hailing competitors."
To do that, however, Tesla would need to achieve 99.99% autonomous driving efficacy, which Black said meant 1 critical disengagement per 10,000 miles or "once a year."
Black also acknowledged that investors remained skeptical of Robotaxis since it still operates in Austin with a safety driver.
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Why It Matters: The comments come as Uber recently signed a deal with Lucid Group Inc. LCID to develop a global robotaxi program for the ride-hailing platform.
Uber had also recently partnered with Alphabet Inc.'s GOOGL GOOG Waymo to expand its services in the city of Atlanta. Uber had also invested in the autonomous driving company Wayve.
Elsewhere, Tesla is also expanding its Robotaxi serviceable area as the company targets Phoenix, Arizona, according to officials from the city's local government.
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