Uber CEO Dara Khosrowshahi Finds Elon Musk's Robotaxi Vision 'Pretty Compelling,' Says Tesla Will Eventually Solve Autonomy: 'But For The Next 5 Years I Bet On Waymo'

Uber Technologies (NYSE:UBER) CEO Dara Khosrowshahi is optimistic about Tesla Inc. (NASDAQ:TSLA) eventually achieving vehicle autonomy at scale.

What Happened: Tesla could certainly be an Uber rival if they develop their own autonomous vehicle for which rides could be availed solely on the Tesla app, Khosrowshahi said on Sunday on the Hard Fork podcast. However, if Tesla decides to work with Uber, then the two companies could be partners, the CEO said.

“To some extent, again, both can be true. So I don’t think it’s going to be an either, or,” Khosrowshahi said.

“I think Elon’s vision is pretty compelling…,” the Uber CEO said about Musk’s robotaxi plans.

Despite differences between Tesla’s and Waymo’s approach to achieving vehicle autonomy, both companies will eventually achieve it, according to Khosrowshahi. While Waymo’s tech reduces the effort on the software with added hardware such as lidar and sensors, Tesla’s model puts added weight on the software, he said.

“I think Elon eventually will get to viable scale but for the next 5 years I bet on Waymo,” he said. However, Tesla’s full self-driving (FSD) driver assistance technology is getting pretty good, the CEO said, while adding that he wouldn’t bet against Tesla given Musk has accomplished “unimaginable” feats before.

Why It Matters: Tesla unveiled its 2-seater dedicated robotaxi product called Cybercab earlier this month in an event near Los Angeles. The company also unveiled a 20-seater Robovan with no pedals or steering wheels.

The company will start autonomous driving with its Model 3 and Model Y in Texas and California next year and the Cybercab will join the autonomous fleet in 2026 or before 2027, Musk said, while adding that he tends to be overly optimistic with timelines.

Musk has previously said that Tesla’s robotaxi fleet will function like a combination of Airbnb and Uber. While a certain portion of the fleet will be owned by Tesla, individual customers can also add or subtract their vehicles to the robotaxi fleet at will. As for riders, they can summon a car using the Tesla App, Musk said, putting Tesla as a competitor to Uber.

In an interview in August, Khosrowshahi expressed doubts about the plan including that he is not sure if a car owner is going to want his car to be ridden in by a complete stranger.

Furthermore, Tesla drivers will also likely want their car at the time when ridership is high, creating trouble in meeting demand, he said on an episode of The Logan Bartlett Show.

Building cars and operating a taxi fleet are "very very different" businesses, the Uber CEO then noted. While running a fleet, the company has to match people with their rides, and price the rides economically while also addressing other concerns like people getting sick in a car, losing items, or getting involved in accidents, he said, while also expressing hopes for a partnership.

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Photos courtesy: Tesla, Shutterstock and George Grinsted via Flickr