Uber’s CEO Dara Khosrowshahi asserts that the transportation market can support multiple players like Uber and Tesla, countering the notion of a single dominant force. As Uber collaborates with Waymo for autonomous services in Austin, Tesla prepares to launch its robotaxi service. Both companies gear up for intense competition in the booming trillion-dollar sector.

In a recent discussion at Semafor’s World Economy Summit, Uber CEO Dara Khosrowshahi pushed back against claims that one company will dominate the transportation sector. Khosrowshahi emphasized that the transportation space, a staggering trillion-dollar industry, can accommodate multiple players, including heavyweights like Tesla. He firmly stated, “there will not be a winner-take-all.”

Highlighting the potential of rideshare, he suggested that as autonomous vehicles become more prevalent, rideshare could very well outpace traditional car ownership. The shift to self-driving tech won’t just give a mere nod to one victor—it’s all about options for consumers as autonomy evolves in the industry.

Khosrowshahi also noted that Uber is in motion, pairing up with Waymo to launch autonomous ride-hailing services in Austin and Atlanta. This collaboration aims to put Waymo’s entirely self-driving electric vehicles on the road, with initial rides already occurring in Austin. This venture is expected to expand, potentially bringing hundreds of autonomous vehicles into the mix.

On the other side of the coin, Tesla is revving up its own robotaxi plans. In the recent Q1 earnings call, CEO Elon Musk detailed his company’s objective of introducing robotaxi services in Austin as soon as June. He claimed that the focus is on solving unsupervised autonomy using the Model Y, an ambitious goal for the automaker.

Khosrowshahi reflected on Tesla’s ambitious tech, stating, “It is delightful, but I have to take over every once in a while.” He praised it as a remarkable product, admitting to owning a Tesla himself. Meanwhile, while Khosrowshahi showed openness to working with Tesla, Musk, on his part, took a jab at Waymo’s pricier operations, noting that their robotaxis cost “way mo’ money.”

There’s a bit of rivalry simmering here. Former Waymo CEO John Krafcik pointed out that despite Tesla’s bravado, they’ve yet to sell a single robotaxi ride to the public, only cars. The upcoming competition in Austin promises to heat up as both companies gear up for their respective launches.

Market-wise, Uber seems to be riding a wave, with its stock up nearly 40% year-to-date, tantalizingly near record highs. Analysts credit this upswing to its foray into autonomous tech and innovative delivery services that are reshaping consumer expectations. Looks like things are moving fast in the world of transportation—it’ll be interesting to see how all these players navigate their paths ahead.

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