Uber (UBER) is in discussions with both private equity firms and banks to raise capital for its expanding robotaxi initiative, CEO Dara Khosrowshahi confirmed, as the company accelerates efforts to commercialize self-driving technology at scale.
Uber already offers robotaxi rides from Alphabet-owned Waymo via its app in Austin and Atlanta, and in July announced a $300 million deal to deploy over 20,000 vehicles from EV-maker Lucid, equipped with self-driving systems from Nuro, across the next six years.
Khosrowshahi on Wednesday described the partnerships as components of a larger strategy built around three distinct business models: paying partners a fixed rate for vehicles, sharing revenue with fleet operators, and owning autonomous vehicles while licensing the software that powers them.
“We are talking to private equity players, we have talked to banks,” the CEO said. “Once we prove the revenue model, how much these cars can generate on a per day basis, there will be plenty of financing to go around.”
At present, Uber plans to allocate a “modest” portion of its $7 billion in annual cash flow toward the rollout. The company is also considering minority stake sales in affiliated ventures to help fuel the expansion.
Analysts suggest that successful robotaxi deployment could significantly reduce Uber’s labor-driven cost structure, offering a clear path to improved profitability.
While the sector faces regulatory scrutiny and consumer skepticism, major players such as Tesla and Waymo continue to invest heavily. Elon Musk has said the robotaxi market could be worth trillions, underscoring the high stakes.
Waymo currently operates in five U.S. cities, including San Francisco. Tesla launched its own robotaxi service in Austin in June and began ride-hailing in the Bay Area in July.
Uber noted it has not observed any noticeable shifts in rider demand in either Austin or San Francisco since Tesla’s entry into the robotaxi space.
“To a lot of these companies, it does seem this will be a worthwhile endeavor … as there are lofty predictions about the robotaxi industry’s total addressable market,” said Ken Mahoney, CEO of Mahoney Asset Management.
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