Uber is Buying 24,000 Volvo Self-Driving Cars For Approximately $1,000,000,000

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Uber is Buying 24,000 Volvo Self-Driving Cars For Approximately $1,000,000,000

By William Glasser

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Uber Self-Driving Car; Credit https://qz.com/1133802/uber-is-buying-1-billion-worth-of-self-driving-xc90-cars-from-volvo/

Five months into Uber’s campaign to improve with its drivers, on November 20, 2017, the taxi company has confirmed that it has bought approximately 24,000 self-driving cars from Volvo. It is a risky move and it will benefit from night time driving and holiday driving. However this bold move could work out for Uber because it will be as if they are paying each car a one-time payment of approximately $40,000.

It will probably cost Uber more than $1,000,000,000 (one billion dollars). If the total of all 24,000 cars is $1,000,000,000 than each car will cost $41,666.67.  These 24,000 cars will be just part of Uber as Uber already has more than 2,000,000 drivers.

An advantage of the self-driving cars is they can work 24/7, except for when they need to refuel. For example immagine on Thanksgiving or Christmas many drivers would not be working, but these 24,000 self-driving cars will.  That is what makes these cars crucial assets for Uber.

The car is modeled off of the Volvo XC90, a luxury SUV vehicle. Uber will modify cars with autonomous technology from its self-driving division. In the Uber app, you can select what type of car you want, but these self-driving cars are only SUVs. So if you want a chance to ride in one of these cars, make sure you select SUV when you order your cab.

Lyft, one of Uber’s competitors, is also looking to buy self-driving cars. Business wise, self-driving cars could be an attraction to their company and with Lyft potentially buying self-driving cars could take away some of the attraction. Uber must seize its moment for it is called “Uber” which means outstanding or supreme.

UBS financial services predicts that by 2030 (almost 12 years from now) in urban areas, it will be cheaper to use self-driving taxis than to own your own car. How crazy is that? That means that you could be seeing many more self-driving car purchases from all taxi brands. I think that Uber will benefit from this, partially because it provides choice for people who do not support self-driving cars to have humans drive them rather than robots driving them.

Sources:

https://qz.com/1133802/uber-is-buying-1-billion-worth-of-self-driving-xc90-cars-from-volvo/

 

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Uber is Buying 24,000 Volvo Self-Driving Cars For Approximately $1,000,000,000