Self Driving Helps Uber To Make More Money

13/04/2023 1
هاني الحميدي

Self-driving cars have been a topic of discussion for years, and now we are finally seeing them become a reality. With the advancements in technology, companies like Tesla, Google, and Uber have been investing heavily in self-driving technology. The Toyota Prius with self-driving system is one such vehicle that has caught the attention of many

The cost of the Toyota Prius with self-driving technology is around $320,000, which is more expensive than a Ferrari California. However, this cost is definitely worth it when considering the benefits it offers. The self-driving car can work for longer hours than a human driver, which means it can generate more revenue. In addition, the cost of the self-driving technology will come down in the future, making it more affordable

Let's take a closer look at the numbers to see how much money can be saved by using self-driving cars. If Uber were to use a self-driving car for 15 years, the monthly cost would be around $1,777. This includes the cost of the car, gas, maintenance, and insurance expenses. However, the cost will come down in the future as technology advances

On the other hand, an Uber driver in San Francisco can make around $20 per hour. If a self-driving car were to work for 12 hours a day, it could generate around $7,200 in revenue per month. This is a significant amount of money that can be saved by using self-driving cars

Calculating the gross profit margin from self-driving technology, we get 61.1%, which is much higher than Uber's current gross profit margin of 25%. However, the drivers currently take 75% of the revenue, so the actual profit margin is lower. In the future, with the cost of self-driving technology coming down, Uber can make a gross profit margin of around 60%

Another advantage of self-driving cars is that they can offer lower prices and faster service. From research, it can be seen that the cost of an Uber ride from Downtown Berkeley to Downtown San Francisco has decreased over the years, the cost of a ride from Downtown Berkeley to Downtown San Francisco with UberX is $30. However, using UberPOOL, the cost has reduced over time from $15 at the beginning of 2016 to $7-$10 in mid-2016, and as low as $4-$8 with the UberPOOL Ride Pass in 2017. With self-driving cars and a 20% discount, the cost could be as low as $3.2-$6.4. This makes it a more affordable and efficient option compared to public transportation, which costs $4 and takes 45 minutes

From all these numbers, it can be estimated that Uber's valuation could be around $130B-$195B. This is based on Uber's revenue in 2016, and using a P/E ratio of 20x to 30x. With the increasing adoption of self-driving cars, the valuation is only going to increase

In conclusion, self-driving cars are the future of transportation, and the Toyota Prius with self-driving technology is a step in the right direction. The cost of self-driving technology will come down in the future, making it more affordable for everyone. With the use of self-driving cars, Uber can generate more revenue and offer cheaper and faster service, which is a win-win situation for everyone involved