Uber is going all in on autonomous vehicles, and its CEO wants to make sure the rollout doesn’t repeat the mistakes of the broader AI industry. Speaking at the company’s earnings call on Wednesday, Dara Khosrowshahi outlined an ambitious plan to spend more than $10 billion over the next few years to bring self-driving cars to scale.

“We expect to commit over $10 billion of capital over the coming years to bring AVs to market at scale,” Khosrowshahi said. “That progress was evident this quarter. AVs are live on Uber in 7 cities, on track for as many as 15 by year-end.”

Key Facts

• Uber plans to spend $10 billion-plus on autonomous vehicle development and infrastructure.
• Robotaxis are currently live on Uber in seven cities, with a target of 15 by the end of the year.
• Uber aims to expand its AV operations to 28 cities globally by the end of 2028.
• The company has partnered with more than 30 companies, including Wayve, which just received a permit to launch joint robotaxi service in London.
• CEO Dara Khosrowshahi says AV adoption should be slower and more deliberate than the AI boom to avoid public backlash.
• Uber is opposing a Washington, D.C. bill that would allow robotaxi operations, while Waymo supports it.
• Recent reports suggest a possible rift between Uber and Waymo, with Waymo reportedly planning to operate robotaxis through its own app by January 2028.

Khosrowshahi said a significant portion of that investment will go into building the physical and digital infrastructure needed to support autonomous vehicles before they hit the roads en masse. Another large chunk will be used to expand service areas globally. Uber currently operates AV rides in seven cities, but the company has set an aggressive target of roughly 28 cities by the end of 2028 — a fourfold expansion in less than three years.

“Our ambition is straightforward: to become the world’s leading commercialization platform for autonomous vehicles,” Khosrowshahi said during the earnings call.

Uber has partnered with more than 30 companies to make that happen. One of those collaborators, Wayve, just secured a permit to begin rolling out a joint robotaxi service in London. That marks a major step for Uber’s international autonomous vehicle ambitions, especially as regulators in Europe and the UK take a cautious but increasingly open approach to self-driving technology.

An Existential Challenge

Autonomous driving is widely viewed as an existential issue for Uber. The company’s ride-hailing business depends on human drivers, but robotaxi operators like Waymo are rapidly expanding. Investors worry that as autonomous ride-hailing becomes more common, Waymo and similar services could undercut Uber on price and convenience. That pressure is forcing Uber to stay ahead of the curve, both by launching its own AV partnerships and by making sure it remains the dominant platform for hailing a ride — whether a human is behind the wheel or not.

Khosrowshahi acknowledged those fears, but he also argued that the company’s approach to AVs will be fundamentally different from the rapid, sometimes chaotic expansion seen in the AI industry. He said that while Uber is expecting autonomous vehicles to be adopted globally, the rollout should be slower and “more deliberate.” That, he believes, will ultimately be better for the technology and for the company.

“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,” Khosrowshahi said. “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.”

Avoiding the AI Blowback

The CEO was referring to the intense souring of public sentiment against artificial intelligence and the data center buildout that has consumed the tech industry over the past few years. AI companies have been constructing massive infrastructure projects at an unprecedented scale, often at the expense of local communities. Residents near new data centers have complained about negative health effects, strained water and power resources, environmental damage, and social disruption. The widespread use of non-disclosure agreements between AI companies, data center developers, and local governments has only intensified the backlash, as communities demand more transparency and oversight.

Khosrowshahi made clear that Uber does not want to replicate that dynamic with robotaxis. Instead, he called for “smart regulation” and ongoing dialogue with shareholders and the public.

“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 said.

Uber’s own history with autonomous vehicles has been mixed, to say the least. In 2018, one of Uber’s self-driving test vehicles struck and killed a pedestrian in Tempe, Arizona. The incident led to a suspension of the company’s autonomous testing program, a series of internal safety reviews, and a sweeping change in leadership around AV efforts. Uber eventually sold its self-driving unit, Advanced Technologies Group, to Aurora Innovation in 2020, a deal that valued the division at roughly $4 billion. That chapter still looms large over Uber’s autonomous ambitions, and it helps explain why Khosrowshahi is emphasizing a measured, safety-first approach today.

The Waymo Relationship

Adding to the complexity is Uber’s relationship with Waymo. The two companies have been both partners and competitors in the robotaxi space. Waymo is currently an exclusive partner for robotaxi services offered through Uber in several American cities, including Austin and Atlanta. But recent reports point to a growing rift between the two companies. Waymo is reportedly interested in operating robotaxis through its own app, with a possible split set to occur in January 2028. If that happens, it could dramatically reshape the AV market and significantly alter Uber’s strategy.

Khosrowshahi tried to address those concerns during the earnings call, emphasizing that Waymo remains an important partner even as Uber prepares for a future with multiple AV providers.

“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 diversification strategy is central to Uber’s long-term vision. Rather than building its own self-driving system from scratch, Uber has positioned itself as a commercialization platform that can work with many different AV developers. This approach allows the company to hedge its bets and avoid the enormous costs and technical risks of building its own autonomous vehicle stack. It also gives Uber a way to maintain leverage over any single partner, including Waymo.

Regulatory Battles

Uber’s appeal for more regulation may also have a political dimension. The company is currently locked in a regulatory fight in Washington, D.C., over a bill that would allow robotaxi operations in the capital. Uber strictly opposes that bill, arguing that it would displace human drivers who rely on ride-hailing platforms. Waymo, by contrast, supports the legislation. The split puts Uber in an awkward position: publicly calling for thoughtful AV regulation while simultaneously working to block a measure that would accelerate the deployment of robotaxis in a major U.S. city.

From Uber’s perspective, that position is about protecting its existing driver network. The company has spent years fighting for labor protections and fighting against measures that would classify drivers as employees, while also pushing back against policies that could undermine the gig model. Allowing a competitor to operate robotaxis freely in D.C., without similar regulatory guardrails, could threaten the livelihoods of thousands of Uber drivers in the region.

At the same time, Uber’s own AV expansion is already displacing human drivers in some markets. The company has been rolling out robotaxis in cities like Austin and Atlanta, where passengers can choose between a human driver and a self-driving vehicle. As the technology improves and costs come down, Uber will likely face pressure to favor robotaxis over human drivers, creating an inherent tension that is difficult to resolve.

The Broader AV Landscape

Uber is not the only company chasing the robotaxi dream. Waymo remains the most visible player in the United States, with commercial services operating in multiple cities and plans for further expansion. Amazon-owned Zoox is testing purpose-built robotaxis that have no steering wheel or pedals. Tesla has announced its own robotaxi efforts, though the timeline for a fully autonomous fleet remains uncertain. And a host of startups, including Wayve, are working on software and hardware solutions that could make self-driving cars more accessible and reliable.

Khosrowshahi’s comments suggest that Uber intends to be at the center of this transformation, not as a car manufacturer or a software lab, but as the platform that connects passengers with autonomous vehicles from many different providers. That is a natural extension of Uber’s existing business model, and it could allow the company to survive and thrive even if human drivers eventually become a smaller part of the ride-hailing equation.

Still, the path is far from smooth. Technical challenges remain, public trust is fragile, and regulation is uneven across jurisdictions. Khosrowshahi’s call for a slower, more deliberate approach reflects a recognition that the AV industry needs time to prove itself. Unlike AI data centers, robotaxis operate directly in public spaces, interacting with pedestrians, cyclists, and human-driven vehicles every day. A single high-profile crash could set the industry back years, as Uber saw firsthand in Tempe.

For now, Uber is pushing forward on multiple fronts: spending money, forging partnerships, expanding service areas, and preparing for a future in which autonomous vehicles are a normal part of urban transportation. The company’s ambition is enormous, but so are the risks. By deliberately avoiding the kind of rapid, aggressive rollout that has generated so much backlash against AI, Khosrowshahi is betting that patience will be a competitive advantage — and that the robotaxi revolution, when it finally arrives, will be one that the public is ready to accept.

Source: Gizmodo News