Uber pushes for self-driving cars after losing $900 million

 - August 24, 2018

Uber is facing some inner turmoil and restructuration after facing massive losses. The company’s Advanced Technologies Group division focuses on autonomous vehicles and self-driving technology. CEO Dara Khosrowshahi remains undecided on whether or not to shut down the ATG division, which reportedly burns through $100-$200 million per year.

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Uber’s ATG division remains the centerpiece of constant argument within the company. Because Uber takes a loss with every ride due to driver payout, many argue that automated driving technologies are the key to the company’s future, especially as rival ride-sharing services and auto manufacturers race to create the world’s first viable driverless cars. Supporters argue that by moving away from a driver-based model, Uber can curb losses and create a much higher profit margin, which is especially important now as the company plans to go public in 2019.

Uber’s plans to reassure worried investors haven’t gone swimmingly, however. In March of this year, a self-driving Uber test car struck and killed 49-year-old Elaine Herzberg in Tempe, Arizona. Though there was an Uber safety driver present, they failed to prevent the crash in time. This came mere days after an Uber leadership summit that left the higher-ups assured that self-driving technologies were the future of the company. Bad press and corporate indecision caused many of Uber’s top engineers to flee to other companies.
Still, Uber is confident in their ability to keep up with the competition. In a statement, the company said:
“Right now the entire team is focused on safely and responsibly returning to the road in autonomous mode. That’s our No. 1 objective, and we have every confidence in the work they are doing to get us there.”
Autonomous driving tests have begun again in select U.S. cities. Additionally, Uber has teamed up with auto-manufacturers to license out their self-driving technologies for use in their vehicles. Uber’s role in the inevitable transition to driverless vehicles remains to be seen, but their part has been rocky thus far.