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The Prickly Partnership Between Uber and Google
HughPickens.com writes Google, with billions of dollars in the bank and house-by-house maps of most of the planet, seemed like the perfect partner for Uber, the hugely popular ride-hailing service. But Mike Isaac writes in the NYT that just two years after Google's venture capital arm poured more than $250 million into Uber there are signs that the companies are more likely to be ferocious competitors than allies. Uber recently announced plans to develop self-driving cars, a longtime pet project at Google. Travis Kalanick, Uber's CEO, has publicly discussed what he sees as the inevitability of autonomous taxis, saying they could offer cheaper rides and a true alternative to vehicle ownership. "The Uber experience is expensive because it's not just the car but the other dude in the car," Kalanick said at a technology conference in 2014, referring to the expense of paying human drivers. "When there's no other dude in the car, the cost [of taking an Uber] gets cheaper than owning a vehicle." Uber is also adding engineers who are experts on mapping technology. And the company, based in San Francisco, has been in talks with Google's advertising archrival, Facebook, to find ways to work together.
Not to be outdone, Google has been experimenting with a ride-sharing app similar to Uber's and both companies have long toyed with the idea of offering same-day delivery of items like groceries and other staples. Last month Google announced it would start presenting data from third party applications inside Google Now, a service that displays useful information prominently on the screen of Android smartphones. Google said it had struck deals to draw data from such apps as Pandora, AirBnb, Zillow, and the ride-sharing service Lyft. The company most obviously missing from that list? Google's old and possibly former friend, Uber. According to Isaac, for young companies, even one as well funded as Uber, dancing with giants is a part of doing business — even if there is always a risk of getting squashed. "There are some hard lessons about the dangers of cooperation that are strongly in the memories of these companies," says John Morgan. "Something that makes partnering harder, even when it might make economic sense to do so."
Not to be outdone, Google has been experimenting with a ride-sharing app similar to Uber's and both companies have long toyed with the idea of offering same-day delivery of items like groceries and other staples. Last month Google announced it would start presenting data from third party applications inside Google Now, a service that displays useful information prominently on the screen of Android smartphones. Google said it had struck deals to draw data from such apps as Pandora, AirBnb, Zillow, and the ride-sharing service Lyft. The company most obviously missing from that list? Google's old and possibly former friend, Uber. According to Isaac, for young companies, even one as well funded as Uber, dancing with giants is a part of doing business — even if there is always a risk of getting squashed. "There are some hard lessons about the dangers of cooperation that are strongly in the memories of these companies," says John Morgan. "Something that makes partnering harder, even when it might make economic sense to do so."
buh-bye Uber.
I'm not fond of Uber (not an user, and read some horror stories about raping, etc).
I'm also a Google fan.
But this story reminds me of M$ eating up smaller fish who thought it is safe to partner up with the shark.
Patents Drive Free Software as Hurricanes Drive Construction Industry
The juxtaposition of this article with the previous one on hacking cars made me realize: If you can hack into a self-driving car, you could steal it without having to physically break into it.
I could see this as being feasible for cases where delivery times are flexible. Have a queue of deliveries, and when a ride is called that takes a driver passed that location, they would pick up/drop off the parcel there while also giving the rides.
So the CEO complains about the cost of the Driver of the car!
Those are basically their employees who make their business work. It's like the head of a taxi company saying, if only we could get rid of these Taxi Drivers, we would have a much better company.
He's basically told the existing Uber Drivers, as soon as we can replace you with a trained chimpanzee you are out and putting the chimpanzee's on notice as well.
Well, it is a nice public admission about their view of the people who help them to make a profit.
Does Uber Management have regular planning session where they discuss how bad they can make their companies PR?
"The Uber experience is expensive because it's not just the car but the other dude in the car," Kalanick said at a technology conference in 2014, referring to the expense of paying human drivers. "When there's no other dude in the car, the cost [of taking an Uber] gets cheaper than owning a vehicle."
Be an Uber driver! Great way to make some extra cash! Gosh we love our Uber driving partners!
But they're sucking up all that sweet sweet moolah that could go into our coffers instead, so let's work to get rid of them. But in the meantime, keep driving for us so we can keep the money coming in for R&D to get rid of you!
We don't have a state-run media we have a media-run state.
That type of research really does not seem like something Uber really has the resources for. Google has money to burn so they can have these kinds of pie in the sky research projects, but what has Uber really done from a technological perspective? A cell phone app and some centralized logistics? They did an ok job scaling, but it is still not that impressive of a technical accomplishment.
That being said, the idea of Uber running self driving cars is kinda scary. The company already has a reputation for skirting or ignoring laws/regulations and treats things like insurance as 'customer beware'. In fact their general attitude of 'look out for yourself' would speak to some potentially scary vehicle behavior settings.
I totally think Google should just buy Uber and change it's name to Goober. That would be awesome.
"The Uber experience is expensive because it's not just the car but the other dude in the car," Kalanick said at a technology conference in 2014, referring to the expense of paying human drivers. "When there's no other dude in the car, the cost [of taking an Uber] gets cheaper than owning a vehicle."
I thought that when you signed up to be an Uber driver you had to have access to a less than 5 year old car. In other words you were footing the bill for the capital required to provide the service, as well as on-going maintenance etc.
If Uber ditches the drivers, then who is going to be paying for the cars that Uber uses?
Or If, in the future, you need to own a self driving car in order to sign up with Uber, won't Uber have lost all pretense that it is a ride sharing company?
Yeah man, I own a 2022 Ford Chauffeur and it pays for itself. I just let it drive around all day by itself and collect fares for me!
I am Slashdot. Are you Slashdot as well?
When I heard about self driving cars becoming possible, I immediately thought that some corporation with big pockets should buy a bunch and then write a basic ride share application to allow people to schedule taxis and get to work. I didn't even hear of Uber before this, but I did theorize a taxi service could be launched without even self driving cars. What Uber does in terms of an ap is not complex nor difficult to code. Google should just code their own ride sharing ap for when their self driving cars become feasible. I still don't have high hopes on self driving cars becoming feasible any time soon, but I understand why Google wants to give them positive press.
God spoke to me
Well, one advantage of this driverless car - in India, women could use this instead of Uber cars and not worry about getting raped. Of course, the taxi and other public transport unions will lobby heavily against it, since it would mean that women would stop using them, thereby drying up their income sources.
On a different note, since Uber is finding itself up against Google, they might wanna offer the Uber Partner app on Windows Phones as well, in addition to iPhones & Androids.
The moment you no longer need a job in order to meet your needs, you will quit.
Until then, the moment you find a better job that will pay you more, you will job-hop.
And if you were an employer trying to make money running your business, there is no way in hell that you would keep paying people who aren't making any money for you any more. And if you don't, you will be crushed by the competing business that does.
This isn't evil, it is just what people are incited to do. If you want people to act more benevolently towards others, incite that. Until you do, you don't have a leg to stand on when complaining that people make rational decisions that are in their own best interest.
It was absolutely a good idea for Google to invest in Uber. Not to invest in the company itself, but to invest in creating an ecosystem where people are used to using a smartphone app get a taxi. Now that it is common place, Google can develop their own service built on that ideology but with driverless cars instead.
two companies each good at different things making sure they spread themselves too thin and become useless at everything
You're missing the point.
Automation precedes scale. Once Google automates the vehicles, the cost of the vehicle should go down technically. Then we're looking at disposable cars or reusable car parts. The capital costs should go down a lot.
Of course, that's all theory in the non-Internet, physical world (i.e. it worked for the Internet, but there's not much physical in the internet world...)
They're looking at fixing the issue of "Sorry, we just told you to hop in the car with a rapist"
https://www.youtube.com/watch?v=xGi6j2VrL0o
One of my neighbors works for Google... he says this entire thing has been blown out of proportion. Someone found some old internal Google document fantasizing about future uses of Google's self-driving car tech. The ride-sharing app screenshots are from Google's employee vanpool service.
That said, I'd admit that there could well simply be Business dealings going on. If Google can convince Uber and its shareholders that they'd rather build their own autonomous taxi service from scratch, then they could well be frightened enough to sell Uber to Google at a lower price (which seemed a likely outcome of the Google Venture capital funding up to this point).
Disney did the same kind of thing in the past when they acquired Pixar... they spent a few weeks spinning up a somewhat-convincing team and equipment to develop Toy Story 3 independently of Pixar. Then they suddenly announced that they procured Pixar and Toy Story 3 would be produced independently by them. The internal Disney TS3 team was dissolved just as fast as it was assembled.
I'm curious if this is the same story with the next set of low-earth-orbit satellite internet service... it sounds like Google, Facebook, Iridium, and SpaceX are all suddenly pushing for launching a new constellation, but it's been difficult to tell whether they were all throwing funding at the same constellation, if if they were actually competing with each other, of if it was just another negotiation tactic to keep launch prices down / profits up by one or all of the parties involved.
"When there's no other dude in the car, the cost [of taking an Uber] gets cheaper than owning a vehicle."
Considering that they still need to make a profit on use of their vehicle, I don't see how this is possible. Especially considering a vehicle with enough tech to be self-driving.
Not only would they have to make enough profit to cover the initial investment of the vehicle, they'd also have to cover the loss of depreciation to remain profitable. And lets not even try to guess what insurance will be. Just because it's a self-driving vehicle doesn't mean it'll be immune from the other idiots on the road.