Uber seeks more automaker partnerships, won鈥檛 build cars
The automotive industry is in the early stage of a major transition, brought about by disruptive forces such as autonomous technology and increased urbanization.
Couple the growing popularity of ride-sharing services such as Uber with the impending arrival of fully autonomous cars, and it鈥檚 clear the rate of car ownership in major cities will be trending down.
The major automakers have seen the writing on the wall, which is why in recent months there鈥檚 been a flurry of partnerships formed between the automakers and ride-sharing firms.
In the future, automakers could derive a large chunk of their revenues from autonomous cars offering rides and other mobility-linked services. Some Chinese firms even predict cars will be and owners simply pay to use them, a bit like some mobile phone plans.
Uber, arguably the world leader in ride-sharing, is developing its own autonomous technology, with its self-driving prototypes . But don鈥檛 expect Uber to start building its own autonomous cars once the technology is ready for prime time, which some experts, including the CEOs of Tesla Motors [NSDQ:TSLA] and Fiat Chrysler Automobiles [NYSE:FCAU], predict could happen in the next 5-10 years.
reports that Uber CEO Travis Kalanick said his company wants to work with automakers rather than build vehicles itself. It's a strategy Apple may also employ for its oft-rumored car, .
Just go to a German manufacturing facility, 鈥渁nd you will very quickly realize you do not want to make cars,鈥� Kalanick is quoted as saying.
Uber formed its first partnership with an automaker in May when it regarding several potential areas of collaboration including sharing of R&D as well as a lease program where instead of making payments the vehicle owner can simply offer rides to Uber users. And according to some of Bloomberg鈥檚 sources, Uber is also in talks with FCA. Recall, FCA has already to build a fleet of 100 Chrysler Pacifica-based autonomous prototypes, and the automaker is also reportedly in talks with Amazon over a deal to use autonomous cars for delivery of packages.
Unfortunately, this transition could lead to some smaller brands disappearing, something Fiat heir and major FCA shareholder Lapo Elkann told (subscription required).
鈥淚 believe that there will be fewer brands,鈥� he said. 鈥淏rands will unite and more brands will work hand in hand.鈥�
This article first appeared at .
