Uber CEO says robotaxis are a 'trillion-dollar-plus' business — and one market will drive the boom

Core Insights - Uber's CEO, Dara Khosrowshahi, identifies robotaxis as a "trillion-dollar-plus" opportunity, with a significant growth market in Asia, expecting to operate in over 10 markets in the Asia-Pacific region by next year [1][2] - McKinsey estimates that the shared-mobility market could reach $1 trillion by 2030 if robotaxis and roboshuttles scale effectively [2] - Japan, Hong Kong, and Australia are highlighted as key markets for Uber's robotaxi services, with an emphasis on the need for transportation in both urban and rural areas due to an aging population [3] Industry Dynamics - The autonomous driving sector is characterized by multiple players, indicating it is unlikely to be a "winner-take-all" market, necessitating collaboration with safe partners and regulators [4] - Uber is already witnessing increased demand for robotaxis, particularly in markets like Austin and Atlanta, which are growing faster than other US markets [5] - Despite the hype, the path to profitability in the robotaxi market remains uncertain, with warnings from analysts about overestimations of market potential [6] Financial Considerations - The high production cost of autonomous vehicles, estimated at around $150,000 per Waymo vehicle, has led to financial losses for major players, including Alphabet's "Other Bets" division, which reported a loss of $1.42 billion in Q3 [7]