Waymo ends Uber booking deal as Uber argues its platform can make robotaxis pay

Google-owned Waymo has said it will stop allowing Uber users to book its robotaxis, ending a partnership that had been exclusive in Austin and Atlanta. The move came hours before Uber CEO Dara Khosrowshahi argued that autonomous vehicle operators should use Uber's platform, saying it can deliver higher trips per vehicle per day and fleet profitability. Uber also reported third-quarter bookings of $59.8 billion and revenue of $14.75 billion, while Australia's High Court ordered it to pay AU$81 million in payroll taxes.

Waymo ends Uber bookings

Waymo Co-CEO Tekedra Mawakana told Bloomberg that the company would end a partnership that saw it work exclusively with Uber in Austin and Atlanta. Mawakana said Waymo was not happy that when users of Uber's app requested a ride in one of its robotaxis, they were not guaranteed to get one. News of that break-up came on the same day that Uber announced its quarterly results.

Uber pitches its platform

Uber published remarks its executives intend to make during an earnings call. Khosrowshahi used those remarks to promote Uber as the natural home for robotaxi fleet operators, because it already delivers around 30 percent higher trips per vehicle per day compared to apps run by autonomous cab companies. He said that higher utilization rate, plus use of shared charging and maintenance infrastructure, can deliver higher fleet profitability even after paying Uber's marketplace fee. He also said that as autonomous technology becomes more widely available, the ability to commercialize vehicles profitably will become an increasingly important source of competitive advantage and value capture. The two events were described as ironic because Uber argues the scale of its platform makes it the ideal host for third-party players, just as Google does with its search, app store, and YouTube services. The report noted that the two companies hold concerningly dominant positions in their respective markets.

Uber plans more robotaxis

Khosrowshahi outlined plans to put around 2,000 robotaxis on the road in 2027, before a much larger commercial ramp beginning in 2028. That plan means Uber will run some cars itself and rely on third-party robotaxi operators who allow bookings on its app. He said building a broad ecosystem does not mean spreading resources evenly, and that Uber intends to maintain an open platform while concentrating capital, integration resources, and hands-on deployment support behind a smaller group of partners with the clearest paths to commercial scale and attractive economics at maturity.

Uber results and tax ruling

Uber users booked $59.8 billion worth of services in its third quarter, up 20 percent year over year. The company recognized $14.75 billion of that as revenue, a ten percent improvement. Rideshare accounted for $29.5 billion of bookings and $7.5 billion of revenue. Delivery services brought in $5.5 billion of revenue on $28.5 billion of bookings. Australia's High Court decided that the company must pay AU$81 million ($57 million) in State payroll taxes because the fees paid to rideshare drivers are effectively wages. The case considered Uber's activities in one of Australia's six States, all of which charge payroll tax. The case is one of many around the world in which courts have found gig workers should be treated as employees for legal and tax purposes. The High Court is Australia's highest judicial authority, and like-minded jurisdictions around the world are aware of its decisions, potentially making more trouble for Uber further down the road.

Sources: The Register