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Uber Stops Self-Driving Car Pilot In San Francisco After The DMV Steps In (engadget.com)

93 Escort Wagon writes: San Francisco bicyclists can breathe a sigh of relief now that Uber has suspended testing of its autonomous fleet in the city. The company announced the decision after the California Department of Motor Vehicles suspended the registration of the vehicles involved in the testing. Uber remains "100 percent committed to California and will be redoubling our efforts to develop workable statewide rules," the company said. A spokesperson for Uber told Recode, "We are open to having the conversation about applying for a permit, but Uber does not have plans to do so."

151 comments

  1. DMV offered to bend the rules for Uber. by mjwx · · Score: 5, Insightful
    This is a case of Uber being recalcitrant, not that the laws were restrictive or unfair.

    As per this article, the DMV tried to work with Uber to get permits for the vehicles.

    The DMV told Uber that if it had obtained a permit, the regulator would have given the green light to the self-driving pilot. DMV director Jean Shiomoto said in a letter sent to Uber that she would "personally help to ensure an expedited review and approval process", which she said could take less than three days.

    So it's not like the city was trying to stop Uber.

    Another 20 companies exploring self-driving cars — including Alphabet's Google, Tesla Motors and Ford Motor Co — have obtained California DMV permits for 130 cars.

    It seems its not difficult for other companies either.

    Its just that Uber doesn't want to play by the rules, even when the rules are being bent for their benefit. The Recode article in the fine summary said it would be $150 per vehicle so it's not like they were trying to kill them with fees either.

    Either that, or Uber knows it's autonomous car program is not ready for prime time.

    --
    Calling someone a "hater" only means you can not rationally rebut their argument.
    1. Re:DMV offered to bend the rules for Uber. by Anonymous Coward · · Score: 3, Informative

      The "culture" argument sounds like a smokescreen. Licensed testers need to report their problem events (to much discussion online) and from what we've seen reported -- running red lights and hooking across bike lanes -- this would reveal that their system is not currently up to quality. Frankly if it's doing those kinds of things, it needs to still be confined to test tracks.

    2. Re:DMV offered to bend the rules for Uber. by AvitarX · · Score: 1

      Except their cars weren't autonomous by California law, as they required active monitoring by a person.

      CA law

      “Autonomous vehicle” means any vehicle equipped with technology that has the
      capability of operating or driving the vehicle without the active physical control or monitoring of
      a natural person,

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
    3. Re:DMV offered to bend the rules for Uber. by bfpierce · · Score: 3, Informative

      I think Uber needs to hire new lawyers.

      These cars are in fact equipped with technology that has the capability of operating without the human being there. That fact that Uber mandated a person had to sit in there and monitor it isn't the point, these vehicles have that capability, and thus do fall under this law.

      That's why they just got their registrations revoked.

    4. Re:DMV offered to bend the rules for Uber. by AvitarX · · Score: 1

      By that argument, so is a standard Tesla.

      They clearly need constant monitoring (and better drivers doing the monitoring).

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
    5. Re:DMV offered to bend the rules for Uber. by bfpierce · · Score: 1

      Teslas need a weight in the drivers seat to operate I thought, and don't they turn off if you take your hands off the wheels now? The first would necessarily mean they cannot operate without a human monitoring the vehicle.

      There's subtlety there, maybe CA DMV could make a case for it but I believe Tesla would win on that point.

    6. Re:DMV offered to bend the rules for Uber. by Mr+D+from+63 · · Score: 1

      Uber's greatest advantage was out of being the unregulated service in a regulated market. As they grew that became harder and harder.

      They seem to want to stick to their roots here as well and avoid regulation, but at some point the same regulations you want to avoid are the ones that can give you a competitive advantage. In this case, they can be an early mover in the licensed self driving vehicle market, which can be a barrier to entry for future competitors as those regulations will most certainly evolve.

      But maybe they can find some autonomous car sanctuary city somewhere that doesn't mind putting a few cyclists at risk.

    7. Re:DMV offered to bend the rules for Uber. by JoeMerchant · · Score: 1

      Uber is big enough, they've analyzed the permit option and it's not attractive to them - that's why they're not planning on getting one even after they've been shut down. "Open to talks" means they want something in the permit changed. Not much to see here, unless Uber actually speaks up about why they don't want a permit.

    8. Re:DMV offered to bend the rules for Uber. by bigpat · · Score: 1

      I didn't read it that way. Under the law it really did appear that Uber had a valid point that they weren't operating their cars fully autonomously since there was a driver at the wheel ready to take over control like with Tesla's and other manufacturer's cars. It isn't at all clear if all the other manufacturers have autonomous permits for their driver assist technologies like self braking. It seems the permit should only have been necessary when transitioning to fully autonomous operation with no driver at the wheel.

    9. Re:DMV offered to bend the rules for Uber. by Anonymous Coward · · Score: 1

      They have to report *once a year* and the report is pretty low content - take a look at the disengagement reports on the DMV website - they're typically 1 line long.

      https://www.dmv.ca.gov/portal/dmv/detail/vr/autonomous/disengagement_report

      They don't need to report infractions (running a red light) unless it disengages.

      They do have to report accidents within 10 days, but there's nothing special about the OL316 reports
      https://www.dmv.ca.gov/portal/dmv/detail/vr/autonomous/autonomousveh_ol316+

      I note that in California, *everybody* is required to report significant accidents ($750 in damage, injury, death) on form SR-1
      https://www.dmv.ca.gov/portal/dmv/detail/eformsinfo/sr/sr1helpfullinks
      Often, your insurance company does this for you.
      So no difference between a Autonomous vehicle and Joe citizen.

    10. Re: DMV offered to bend the rules for Uber. by Anonymous Coward · · Score: 0

      And I want to sell home made baked goods like at a PTA bake sale, but to supermarkets. But OSHA and the USDA complain my cookie factory has "exceeded the established guidelines" for how many diseased illegal immigrant fingers are allowed, whatever that means. And the copyright court says I can't label and call my cookies Chips ahoy without a license. And the FDA says I can't put human feces in instead of chocolate.

      Bunch of commie facists!

  2. Finally by Anonymous Coward · · Score: 2

    That first video where their car drove through a hard-red light, and with a pedestrian in the crosswalk was scary.

    1. Re:Finally by Carewolf · · Score: 1

      That first video where their car drove through a hard-red light, and with a pedestrian in the crosswalk was scary.

      As a computer expert, autonomous cars are just plain scary. I don't trust computers, I know how they work.

  3. GM by Anonymous Coward · · Score: 0

    GM will be building self-driving cars as well, i don't know if they will be needing uber to drive them

    1. Re:GM by Anonymous Coward · · Score: 0

      Not just GM; all major car manufacturers are working on self-driving cars and several parts suppliers work on systems that can be implemented by any manufacturer.

  4. The big news: Uber follows the law by wvmarle · · Score: 4, Funny

    I wonder what kind of serious problems Uber has with their self-driving cars that they suspend the testing without fuss over something as trivial as breaking the law. This must be one of the very first times.

    1. Re:The big news: Uber follows the law by Anonymous Coward · · Score: 0

      They sure seem to have an almost Clintonesque quality of thinking laws are for other people.

      I you clearly meant Trump-esque there. Innocent oversight I'm sure.

    2. Re:The big news: Uber follows the law by Anonymous Coward · · Score: 0

      They sure seem to have an almost Clintonesque quality of thinking laws are for other people.

      I you clearly meant Trump-esque there. Innocent oversight I'm sure.

      Call me when Trump sets up an illegal email server with Top Secret emails on it - connected to the internet.

      Then lies about it.

    3. Re:The big news: Uber follows the law by Anonymous Coward · · Score: 1, Insightful

      Call me when Trump sets up an illegal email server with Top Secret emails on it - connected to the internet.

      Call me when Clinton does. The FBI investigated and found no meaningful wrong doing. Stop pretending that this is a thing that matters. Your favorite asshole won the election. Let it go.

      Then lies about it.

      You're seriously going to pretend that Trump doesn't lie constantly? You are seriously going to pretend that Trump doesn't break any laws?

    4. Re:The big news: Uber follows the law by Tranzistors · · Score: 1

      I'm, sorry, but the AC won't be able to call you, since you did not leave your phone number, or any other contact info. In fact, I suspect you and the parent are both the same person.

    5. Re:The big news: Uber follows the law by Mashiki · · Score: 1

      Call me when Uber WILLINGLY follows even common-sense laws.

      You mean stuff like 6-mo safety checks, proper vehicle insurance, mandatory first aid(usually level C, though some places allow level B) and so on? I agree. Their entire belief that the laws don't apply to them because "they don't believe they're a cab company" when yes, they are. And those regulations and laws exist because back when cab companies were new -- the whole lack of regulation, vehicles in poor repair causing deaths, etc. Has already happened.

      For those that don't know the first aid levels that Uber didn't want to follow here in Canada. Lowest is A, then B, then C, highest is HPC(doctors/nurse/etc). A is basic CPR basic first aid+emergency care for deadly bleeding. B covers CPR+infant CPR+level A. C is basically AED+emergency first aid+plus A & B level requirements and is the same basic level that paramedics, police, fire, etc get. It's 8hrs to get certified, and it's good for 3 years here.

      --
      Om, nomnomnom...
    6. Re:The big news: Uber follows the law by Mr+D+from+63 · · Score: 1

      They forgot to use the magic words.."it just like autopilot on a plane".

    7. Re:The big news: Uber follows the law by micahraleigh · · Score: 1

      Breaking the law was something serious in the past.

      Now it means drinking too much soda in NY.

    8. Re: The big news: Uber follows the law by Anonymous Coward · · Score: 0

      NY, and NYC, let you drink as much soda as you want. You can get unlimited refills in any restaurant. Many, though not all make them free.

      What the elected government of NYC did was regulate the size of the paper bucket used to serve them in (generally) fast food to go places.

      That set of facts isn't as sexy as the lie you spread though.

  5. I'm a fan of Uber by thegarbz · · Score: 5, Insightful

    But really fuck them for this. Taking down a taxi cartel by breaking laws designed to prop up a monopoly is one thing.

    Not abiding by a permit with dangerous test vehicles on the road is quite the other.

  6. Wow, they're actually submitting to authority? by Anonymous Coward · · Score: 1

    Half expecting a snarky, "We don't accept the DMV's cancellation of our registration, and will continue to test these cars while we seek resolution with them".

    1. Re:Wow, they're actually submitting to authority? by Anonymous Coward · · Score: 0

      Their PR department told them that having an employee in handcuffs and their car on a tow truck would be bad marketing.

  7. Here's the bike problem by Tim+the+Gecko · · Score: 2

    The "San Francisco bicyclists can breathe a sigh of relief" comment surprised me until I saw that Uber has a problem with turning right across bike lanes. This certainly isn't a problem for all self-driving cars. In the South Bay I've seen a self-driving car do exactly the right thing: signal, merge into the lane when it turns from solid to dashed, stop at the red light, and then turn. That's a lot better than the average human at the same intersection; seeing someone signal and merge and stop would be quite unusual.

    1. Re:Here's the bike problem by fluffernutter · · Score: 1

      The elephant in the room here is that any self driving car should be able to avoid a cyclist no matter where they are. Why doesn't Uber simply put minds to rest and say, "we have confidence we will avoid a cyclist 100% of the time if they are on the road". Unless they can't, which is the really concerning part.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    2. Re:Here's the bike problem by Anonymous Coward · · Score: 0

      because they hit a pedestrian?

      so saying we wont hit a cyclist no matter would be pretty hard for people to believe

      because Uber are a company made up entirely of lying sacks of shit, so no one should believe a single thing they ever say?

  8. Uber + Autonomous vehicles = Dumb by sjbe · · Score: 4, Insightful

    Its just that Uber doesn't want to play by the rules, even when the rules are being bent for their benefit.

    I get the impression that is something of a cultural thing with Uber at this point. They're not even trying to get along. They are just acting the part of a bully and trying to do whatever they want. I think their corporate mantra is "better to beg forgiveness than ask permission" but they don't even bother with the forgiveness bit.

    Either that, or Uber knows it's autonomous car program is not ready for prime time.

    I think this is probably close to the mark. Uber getting involved in autonomous cars makes absolutely zero business sense. Their entire business model is based on an asset-light utilization of vehicles owned by the people that drive for them. They are basically a middle-man matching and scheduling taxi service. Actually owning the vehicles would cost a ton of money for no obvious benefit to Uber. Uber owning the vehicles (autonomous or not) would A) undermine their (absurd) argument that they aren't a taxi service and B) require a HUGE investment in assets and the attendant insurance, maintenance, upkeep, registration, and tracking. Uber has no infrastructure to do this nor do they have the capital to buy such a fleet.

    Uber getting into autonomous vehicles smacks of marketing more than engineering. They want to project an image and seem hip but this is a project well outside their wheelhouse and they don't curently have the profits to support projects like this like Google or Apple or even Amazon does. I think they are trying to steal a page from the Netflix playbook and be ready for what they think will be the next industry evolution but it would make a LOT more sense for them to let someone else figure out the autonomous vehicle thing and just buy them when the time comes. They are a me-too entry into what is already a crowded field and they have no particular advantage in making autonomous cars and some very obvious disadvantages.

    1. Re:Uber + Autonomous vehicles = Dumb by Anonymous Coward · · Score: 0

      Uber getting involved in autonomous cars makes absolutely zero business sense. Their entire business model is based on an asset-light utilization of vehicles owned by the people that drive for them. They are basically a middle-man matching and scheduling taxi service. Actually owning the vehicles would cost a ton of money for no obvious benefit to Uber.

      They may be currently a matching and scheduling service, but that's not what they want to be. Uber's endgame has always been an autonomous taxi service. Everything else they've done has been stops along the way. Didn't you realize they already have plans underway to lease cars to their drivers? That they're spending millions on lobbying efforts? That they already treat their drivers as robots, and nothing would please them more than a fleet they can track 24/7 and predict accurately enough to time? That, by taking drivers out of the picture, they can all but eliminate cancelled calls and dissatisfaction? That they can then keep the profits instead of the current 25% skim off the top?

    2. Re:Uber + Autonomous vehicles = Dumb by ShanghaiBill · · Score: 4, Interesting

      Uber getting involved in autonomous cars makes absolutely zero business sense.

      In a traditional business sense, of course it makes no sense. But that doesn't apply here. Uber is in a competitive industry with few barriers to entry, and very little profit, yet they have a market cap of $50B. How can they possibly justify that valuation to their investors? The only way is to convince them that there is something more: That self-driving cars are going to revolutionize transportation, and that Uber is going to play a major role in that, with plenty of profit for everyone.

      From a publicity point of view, their defiance of the California DMV was pure genius. Uber got way more news coverage in California than they did for their earlier fully legal SDC rollout in Pennsylvania. They need to be perceived as a gutsy company aggressively pursuing new tech. They achieved that.

    3. Re: Uber + Autonomous vehicles = Dumb by Anonymous Coward · · Score: 0

      Uber will never be able to justify its valuation to investors.

      yes, I said never.

    4. Re:Uber + Autonomous vehicles = Dumb by Joe_Dragon · · Score: 1

      lease cars to their drivers sounds like a good way to make bank till the courts say they are not 1099's and you have pay them at least min wage on W2 so they may be forced to buy back the cars / can't lease them out or have to cover costs that push drivers under the min wage.

    5. Re:Uber + Autonomous vehicles = Dumb by JoeMerchant · · Score: 2

      Autonomous vehicles would be a whole new business model for Uber, but they do have some important pieces of the puzzle in their hand to make it work: 1) a "taxi replacement" business with all the scheduling and management infrastructure working, 2) a brand name that will get them instant customers for the business, and 3) a fleet of human driven vehicles that can handle the customer load until the expensive auto-driven fleet can ramp up to capacity. 4) wide geographic coverage/presence. Any other company trying to launch a robot driven taxi fleet without all of these pieces in-place will be at a significant disadvantage to Uber. Anybody who thinks that robot taxis are "the way of the future" would be wise to invest in or partner with Uber to make it happen.

      It's going to make an already sucky proposition worse for Uber drivers, but they're mostly in it for the financial abuse already, it seems.

    6. Re:Uber + Autonomous vehicles = Dumb by bazorg · · Score: 2

      Actually owning the vehicles would cost a ton of money for no obvious benefit to Uber. Uber owning the vehicles (autonomous or not) would

      [..]

      I'll agree but for a different reason. Banks and car manufacturers will be in a better position to own these vehicles, leasing them to whoever wants to run a Uber-enabled taxi service. With self-driven vehicles, human drivers cease to take a cut of the sales, but other types of company will step in to make money from their assets.

      The benefit for Uber is to carry being seen as the tech people that facilitate business and take their slice of the cake, while avoiding that investment in cars, insurance, maintenance, etc. For now all they need to do is get those self-driven vehicles on the road and legal. The expansion of fleets can be handled by other companies.

      Next step: buy or get bought by a payments processor.

    7. Re:Uber + Autonomous vehicles = Dumb by ddtmm · · Score: 1

      I think you're right about them being in last place when it comes to developing autonomous car technology, but saying "actually owning the vehicles would cost a ton of money for no obvious benefit to Uber" is not true. Simple math shows they would make a killing. Even if you estimate that they average a measly $15/hr with their autonomous cars, working an average of 20 hours per day, 50 weeks/yr, that's $105,000 per year. I think that's what they call profitable.

    8. Re:Uber + Autonomous vehicles = Dumb by Kjella · · Score: 2

      But they have one important thing: A use for a crippled self-driving car. You could imagine the first generation of SDCs being perfect and drive anywhere on any road under any conditions. I very much doubt it, extremely few projects manage a "big bang" transition. But say you have a taxi service and you know that this particular downtown ride is all mapped out, well marked pre-tested roads and the sun is shining on dry asphalt, let's send our self-driving service. Everything else outside that box you get a human driver. Eventually the box grows and grows and by virtue of having the biggest and thus most available fleet and as the market explodes as you get a taxi service much closer to cost-of-driving prices and more flexible than public transport you become the Amazon of modern transportation. Okay maybe a little optimistic...

      --
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    9. Re:Uber + Autonomous vehicles = Dumb by McGruber · · Score: 2

      Uber getting involved in autonomous cars makes absolutely zero business sense. Their entire business model is based on an asset-light utilization of vehicles owned by the people that drive for them. They are basically a middle-man matching and scheduling taxi service.

      Uber is a software middleman dependent on utilizing vehicles and smartphones owned by others. Once the smartphone and (autonomous) vehicles start being produced by the same companies (Alphabet, Apple, etc), then there is no more need for Uber -- ridesharing is trivial compared to autonomous vehicies

      So Uber eneeds to look like its developing autonomous vehicles in order to keep the hype up prior to its IPO.

    10. Re:Uber + Autonomous vehicles = Dumb by Anonymous Coward · · Score: 0

      Uber will still be asset-light when the self driving cars are privately owned and sent off to drive while the owner is not using.

    11. Re:Uber + Autonomous vehicles = Dumb by danbert8 · · Score: 1

      Yep, it is an easy transition for Uber to start adding autonomous cars and as they come online and start taking more of the share of passengers, they can just lower the rates so that human drivers start dropping out. Eventually as they have an entire fleet of autonomous cars the rates will be low enough human drivers won't do the work. Many industries will go this way, but taxis will be very quick as autonomous cars come on the market.

      --
      Yes it's an anecdote! Were you expecting original research in a Slashdot comment?
    12. Re:Uber + Autonomous vehicles = Dumb by Altus · · Score: 3, Interesting

      Actually, i think automated vehciles make it even more clear that Uber is not a taxi service. Its a car rental agency. You are renting a car for a very short period of time, charged by both time and mile. Like some existing rental agencies they will pick you up where you are, except the car doesn't need a person to do that... or to return itself once you are dropped off.

      Their only real asset is the software that handles pickups and drop offs and the code that handles surge pricing. All that works with an automated car service just as well as it does with their current service.

      They would have no employees to pay either which should more than cover the cost of maintaining and even paying for the vehicles. The real issue is how to deal with capacity, having enough automated cars on hand to handle rush hour and what to do with them when you don't need as many cars on the road.

      That said, I see no reason why they would want to develop these cars themselves, why not let someone else do the heavy technical lifting and just buy the cars when they hit the market?

      --

      "In America, first you get the sugar, then you get the power, then you get the women..." -H. Simpson

    13. Re:Uber + Autonomous vehicles = Dumb by Immerman · · Score: 1

      Ridesharing is indeed trivial in comparison to autonomous driving. But having years of optimizations, pervasive brand recognition in the ride-hailing market, and an existing fleet of human-driven cars that they can augment with self-driving vehicles as they become available, all combine to give Uber a powerful first-mover advantage in the market.

      Also, I don't see how it matters in the slightest who makes the smartphone - that's offering nothing but a data portal to the central servers. Anything with a web browser could do the same thing, except for the underhanded surveillance of customers. But at least for now it's clear that none of the phone makers have any interest in stopping such app-based spying on the phones' titular owners, so there's nothing to be gained for the service/app maker also making the phone.

      --
      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    14. Re:Uber + Autonomous vehicles = Dumb by desdinova+216 · · Score: 1

      leasing to drivers is what the traditional Taxi companies do in some cities. and from first hand experience in one of those cities the tax situation is "you're on your own"

    15. Re:Uber + Autonomous vehicles = Dumb by Anonymous Coward · · Score: 0

      Uber getting involved in autonomous cars makes absolutely zero business sense. Their entire business model is based on an asset-light utilization of vehicles owned by the people that drive for them. They are basically a middle-man matching and scheduling taxi service.

      You clearly have not been paying attention. Why has Uber made billion dollar orders from Mercedes for autonomous cars? There business model is providing transportation. If they can do that without having to pay labor costs, and without having to deal with drug dealing drivers, well, I think they'd consider that a positives

    16. Re:Uber + Autonomous vehicles = Dumb by bluegutang · · Score: 1

      I get the impression that is something of a cultural thing with Uber at this point. They're not even trying to get along. They are just acting the part of a bully and trying to do whatever they want. I think their corporate mantra is "better to beg forgiveness than ask permission" but they don't even bother with the forgiveness bit.

      Why not? That strategy worked in the last election...

    17. Re:Uber + Autonomous vehicles = Dumb by um...+Lucas · · Score: 1

      Alas... Demand for Users isn't constant.

      Going into this assuming a constant 20 hour per day usage of every car in the fleet is called looking at things with rose colored glasses.

      Knock that down to 6 hours a day, to have enough cars to accommodate the extremely busy times, and then idle a portion of the fleet waiting for the next call (probably by parking all over the city and powering up the closest car to the next fare).

      Now you're down to $32,000/year.

      Now subtract:

      Insurance.

      Gas or or power recharging

      Inspections/Maintenance

      Regular cleanings

      Maybe you're looking at $15,000 per year after all that.

      How much will a 4 person electric vehicle cost? $60,000? So that's 4 years til you see the first penny of actual profit. Unless you lease or borrow, then you're looking at financing costs/interest, etc. It'll allow you to see positive cashflow each month, at the cost of less actual profit over a longer period of time. Well, scratch that. No one is going to lease you the cars for the fleet - you're going to drive them into the ground by the time the lease is up. But Ubers big, they can obtain other financing either borrowing from banks or issuing bonds, for 4, 5, 6 or 7%.

      And what will the useful life of these cars be? If they're averaging 30 mph for their fares, that's 63,000 miles per year. (not including other incidental mileage such as traveling to the next fare, returning for maintenance, getting a fresh charge, etc).

      So after 4 years you've got a car with 250,000 miles. You got next to no resale value there. And this is when you start seeing actual profit from operating the vehicle (again if it was paid for in cash).

      That's not so profitable anymore, is it?

    18. Re: Uber + Autonomous vehicles = Dumb by Anonymous Coward · · Score: 0

      Uber will never be able to justify its valuation to investors.

      Sure they will, but only when it comes down to earth. Their actual worth is much closer to $50M than $50B.

    19. Re: Uber + Autonomous vehicles = Dumb by Anonymous Coward · · Score: 1

      I agree with the never part, but this isn't about a fleet of self driving cars that will never work no matter what all the damned "futurists" who never see a problem with anything unless it's human think.

      It's about publicity and stringing things along till the IPO at which point the snot nosed lawbreakers will try to cash out.

      Hopefully even Wall Street is smarter than that now.

    20. Re:Uber + Autonomous vehicles = Dumb by Anonymous Coward · · Score: 0

      That they can then keep the profits instead of the current 25% skim off the top?

      But then Uber is on the hook for maintaining the vehicle. Whether it is still cheaper, IDK. I'm just pointing out it's not a flat 4x increase in profit as you seem to be implying, that there are new costs associated with this new model of Uber owning the vehicles.

    21. Re: Uber + Autonomous vehicles = Dumb by Anonymous Coward · · Score: 1

      No, they won't, but you go right on believing that. You futurists are less accurate than a coin toss.

    22. Re:Uber + Autonomous vehicles = Dumb by Joe_Dragon · · Score: 1

      but the courts have said uber drivers are not 1099's. Also uber says we are not an taxi.

    23. Re:Uber + Autonomous vehicles = Dumb by JoeMerchant · · Score: 4, Interesting

      Thing is, I don't think they _can_ lower the rates... I think the human drivers are already giving their vehicle depreciation away for less than complete compensation, and their time spent driving for free. People constantly comment on "how nice their Uber car was" - because it is new, and depreciating rapidly.

      There's are many reasons why taxis are old, and smelly. 1) it's a commodity business with little consumer choice - almost nobody turns away the first taxi at the stand because it's older than the next one. 2) maintaining an old vehicle with 200K+ miles on it is less expensive than buying a new one, especially when you own the repair depot.

      Miles put on old vehicles are much less expensive than miles put on newer cars.

    24. Re:Uber + Autonomous vehicles = Dumb by TheRaven64 · · Score: 1

      Going into this assuming a constant 20 hour per day usage of every car in the fleet is called looking at things with rose colored glasses.

      He isn't, he's assuming an average of 20 hours at $15/hour. Given their current rates, that's assuming that about 10 minutes of each of those hours will be spent transporting a passenger. At peak times, it's going to be a lot more.

      --
      I am TheRaven on Soylent News
    25. Re:Uber + Autonomous vehicles = Dumb by The-Ixian · · Score: 1

      They need to be perceived as a gutsy company aggressively pursuing new tech

      Then why do they continually come off as a bunch of self righteous, entitled scofflaws?

      As has been mentioned before, the idea of them doing self-driving cars seems like it will do more damage to them than keeping the current configuration. Their whole argument of "we're not a taxi service because reasons" completely dissolves if they are the ones who own (or finance) and operate the automobiles.

      --
      My eyes reflect the stars and a smile lights up my face.
    26. Re:Uber + Autonomous vehicles = Dumb by The-Ixian · · Score: 1

      Actually, i think automated vehciles make it even more clear that Uber is not a taxi service. Its a car rental agency. You are renting a car for a very short period of time, charged by both time and mile

      So... a traditional taxi service is a rental agency / chauffer business then?

      Seriously, when you are charging money to take a person from point A to point B that is a taxi and is regulated by specific laws. You can wiggle all you want and re-label what the transactions are for, but the end result is what matters. It's sort of like Congress calling tax a fee just so they can say "we didn't raise taxes", the end result is the same...

      --
      My eyes reflect the stars and a smile lights up my face.
    27. Re:Uber + Autonomous vehicles = Dumb by um...+Lucas · · Score: 1

      The post I was replying to specifically believed Uber could get 20 hour per day, 7 day a week, 50 week a year utilization out of their cars.

      That's the only way their $105,000/year/car calculation works out.

    28. Re:Uber + Autonomous vehicles = Dumb by Anonymous Coward · · Score: 0

      The problem with the current shared economy business model for Uber is they aren't making any money. Its unsustainable and if they have to pay people actual wages along with the related health care, SS, etc, etc they will simply go under.

      It was an unsustainable business model from the very start. Their ONLY hope is for autonomous vehicle fleets.

    29. Re:Uber + Autonomous vehicles = Dumb by Altus · · Score: 1

      If zipcar offered automated vehicles and you could get them to pick you up and then return themselves to their parking spot after you dismiss them, would they really be running a taxi service?

      Is the fact that its metered by the mile and not the minute the difference? Is that really a good reason to have different regulations? As long as the car is safe its hard to justify additional regulation.

      --

      "In America, first you get the sugar, then you get the power, then you get the women..." -H. Simpson

    30. Re:Uber + Autonomous vehicles = Dumb by brunes69 · · Score: 2

      "Uber getting involved in autonomous cars makes absolutely zero business sense"

      Er... if this is truly your thinking, you'd make a very poor CEO.

      Self driving technology will make companies like Uber completely obsolete unless they either get on the badnwagon, or find a partner - and there aren't many left. Tesla is already working on building their own autonomous ridesharing fleet to compete with Uber. Ford has also purchased a ridesharing company. BMW is starting their own. Lyft is partnered with GM.

      This is all a giant race, and we don't know who will come out on top, but if Uber just sat around and did not invest in this area, they would most assuredly be out of business in under 10 years.

    31. Re:Uber + Autonomous vehicles = Dumb by ShanghaiBill · · Score: 1

      As has been mentioned before, the idea of them doing self-driving cars seems like it will do more damage to them than keeping the current configuration.

      This argument only makes sense if Uber, and only Uber, is capable of offering SDC rides. There is zero chance of that. If they do not move to an SDC business model, someone else will do it instead, and destroy them.

      "Keeping the current configuration" is not their choice to make. The market will make it for them.

    32. Re:Uber + Autonomous vehicles = Dumb by HiThere · · Score: 1

      Perhaps, but they've got to survive a few years until the actual autonomous vehicles arrive. They already exist in certain controlled situations, e.g. warehouses with automated forklifts. I expect automated trucks to show up before automated cars because the incremental cost would be less, so you can afford a fancier system. And it would save tremendous amounts of money. You'd probably still need one driver on a long haul, but not a shift change, and no down time. The fully automated cars will be a year or two later, and at first they'll be really high end.

      Sigh.

      I'd like to have such a car, because I don't drive. But an affordable one looks like 5-7 years away.

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
    33. Re: Uber + Autonomous vehicles = Dumb by Anonymous Coward · · Score: 0

      You clearly have not been paying attention. Why has Uber made billion dollar orders from Mercedes for autonomous cars? There business model is providing transportation.

      For the same reason Bush said we'd go to Mars by 2030. Bullshit marketing their successors will get the obligation to meet.

      Uber didn't buy a billion dollars or Mercedes, they brokered a tiny fraction of that as leases.

    34. Re:Uber + Autonomous vehicles = Dumb by Anonymous Coward · · Score: 0

      sounds like he'd make a hell of a lot better ceo than the one Uber has now

    35. Re:Uber + Autonomous vehicles = Dumb by The-Ixian · · Score: 1

      If zipcar offered automated vehicles and you could get them to pick you up and then return themselves to their parking spot after you dismiss them, would they really be running a taxi service?

      Yes, they would actually. If you aren't driving then you are being driven. Hence a taxi ride...

      --
      My eyes reflect the stars and a smile lights up my face.
    36. Re:Uber + Autonomous vehicles = Dumb by TheRaven64 · · Score: 1

      It's assuming 20 hours per day, 7 days a week, 50 weeks a year, with an average of 1/6 utilisation. That's how you make his maths work. His $105,000 is 20 (hours) * 7 (days) * 50 (weeks) * 15 (dollars). Uber charges about $15 for a 10 minute trip, so he's assuming 10 minutes of passenger carrying for each hour on the road.

      --
      I am TheRaven on Soylent News
    37. Re:Uber + Autonomous vehicles = Dumb by um...+Lucas · · Score: 1

      This is stupid. Here's his quote.

      "Even if you estimate that they average a measly $15/hr with their autonomous cars, working an average of 20 hours per day, 50 weeks/yr, that's $105,000 per year. I think that's what they call profitable."

    38. Re:Uber + Autonomous vehicles = Dumb by TheRaven64 · · Score: 1

      Yes, exactly. And $15/hr is not assuming that the cars have passengers for that whole hour. It is assuming that they make an average of $15 per hour. You assumed that this meant full occupancy for that time, and then proceeded to rant about assumption that the original poster had not made.

      --
      I am TheRaven on Soylent News
  9. No law against this by Anonymous Coward · · Score: 0, Troll

    Nothing in the CA law says self-driving cars need permits. This sounds like a gross violation of the 5th and 18th amendments, as well as the Food and Beverage act and the Indian Lands Kerosene Act of 1842 (IANAL).

  10. DMV requirements by OzPeter · · Score: 4, Informative

    The CA DMV has this page listing the requirements for testing self driving cars. They are not onerous. Speculate as you will why Uber doesn't want to comply. It could be anything from having to report incidents on a per yearly basis to not allowing commercial operation (eg not picking up actual customers) or even just a general "fuck you, we're Uber".

    Application Requirements for Autonomous Vehicle Tester Program

    --
    I am Slashdot. Are you Slashdot as well?
    1. Re:DMV requirements by Anonymous Coward · · Score: 1

      Or it could be that Uber doesn't believe their cars are Autonomous since they still need drivers.

    2. Re:DMV requirements by OzPeter · · Score: 1

      Or it could be that Uber doesn't believe their cars are Autonomous since they still need drivers.

      Given that the DMV has the power revoke the registration of the Uber vehicles (and has done so in this case), what Uber thinks is irrelevant.

      Given that Uber has not even tried to appeal this and is instead pulling out of CA suggests that Uber knows how tenuous their claim is.

      --
      I am Slashdot. Are you Slashdot as well?
    3. Re:DMV requirements by Anonymous Coward · · Score: 0

      They didn't want to submit to the CA DMV because ignoring local laws is their core competency. If they submit to legal requirements in CA they'd have set a precedent to obey laws all over the country. And that goes against their (still money losing) business model.

    4. Re:DMV requirements by Anonymous Coward · · Score: 0

      > Speculate as you will why Uber doesn't want to comply.

      Uber is cheap-ass. I'm positive putting up a $5 million surety bond is probably one reason, maybe the main one. Another reason might be related to the driver requirements. No accidents for at least 3 years (I think), no dui's ever, no traffic infractions like reckless driving for a certain period, i.e no points on license within a certain recent timeframe, have had defensive driving training, demonstrable familiarity with autonomous system, etc. Lastly, Uber is required to report every time the autonomous system has an unplanned disengagement event along with an analysis determining the cause. Teh regulations aren't onerous, but they are thorough.

  11. Re:Pirst Fost by kilfarsnar · · Score: 4, Insightful

    Fuck Uber

    I will second this. It seems almost every time I see a car pulling some bonehead maneuver in traffic, it's an Uber. Almost every time some jackass is sitting in a lane, blocking traffic with their hazards on, it's an Uber. Almost every time I see someone jam on their brakes and dive for the side of the road, it's an Uber.

    I know Uber is cool and cheap and convenient for its users. But the drivers are amateurs, and it shows. They don't know where they're going and will pull over anywhere, blocking traffic, to pick up their fares. Because of the draconian, passenger-centric rating system, the drivers are terrified of offending their passenger and will become a nuisance on the road to keep them happy. Taxi's are at least marked, so you expect them to be pulling over in traffic. But Ubers look like any other car, leaving other drivers to wonder why this guy is suddenly slamming on the brakes and double parking in the middle of a busy street.

    Uber sucks for anyone not using the service. I'd like to see the taxi companies step up their game to counter Uber. But unfortunately, it's the taxi industry's fecklessness that made room for Uber in the first place.

    --
    "What the American public doesn't know is what makes them the American public." -Ray Zalinsky (Tommy Boy)
  12. "oversight" is its own opposite by Pseudonymous+Powers · · Score: 1

    "Self-Driving Car Pilot?" Man, and I thought my job was useless!

    1. Re:"oversight" is its own opposite by Altus · · Score: 1

      Just sit back and feel your ass grow.

      --

      "In America, first you get the sugar, then you get the power, then you get the women..." -H. Simpson

  13. ROI for investors? by sjbe · · Score: 2

    Uber will never be able to justify its valuation to investors.

    They wouldn't be the first in that situation. I am inclined to agree but never is a very long time and I've seen more unlikely companies succeed. They have a lot of revenue which is actually the hardest part. Once you have that then profits are a possibility. Without revenues they are screwed. Whether the investors will make their money back kind of depends on how much they dumped in and what sort of margins Uber can make. Are they selling $2 bills for $1 or do they simply have to get to a certain scale and/or cost targets? Hard to say. In any case their profits will have to be rather substantial for the investors to not take a haircut.

  14. Re:Pirst Fost by Applehu+Akbar · · Score: 4, Insightful

    This article is not about Uber drivers. It's about Uber without drivers.

  15. Did they have to wait for the DMV to step in? by Anonymous Coward · · Score: 0

    They were aware of the "problem" and did not pull the fleet out of the streets immediately == unethical fucks.

    1. Re:Did they have to wait for the DMV to step in? by Anonymous Coward · · Score: 0

      Sorry for the typo, I meant to say "criminal fucks" instead. They should be prosecuted.

  16. Valuation and network effects by sjbe · · Score: 4, Interesting

    In a traditional business sense, of course it makes no sense. But that doesn't apply here.

    Sure it does. The laws of economics are not suspended for the benefit of Uber.

    Uber is in a competitive industry with few barriers to entry, and very little profit, yet they have a market cap of $50B. How can they possibly justify that valuation to their investors?

    Uber is not a publicly traded company so they do not have a market cap in the conventional sense. Their valuation is based on an extrapolation from the percentage of the company purchased by investors and the price of that investment. If you buy 10% of a company for an investment of $5B then the company is valued at $50B. That doesn't mean that it actually would be worth that amount on the open market and it certainly doesn't mean they are actually worth $50B. It means the most recent investor felt it was worth that but it is dangerous to extrapolate that too far.

    You think there are few barriers to entry in their industry? I disagree. There are some pretty substantial network effects in play here. There are only so many drivers and cars to go around and they are going to tend to gravitate towards the company which is most likely to have the biggest user base. Sure, users can in theory switch easily but what good is switching to a taxi service that doesn't have any drivers? Scale will matter here which is why Uber is trying to grow as fast as possible. Uber has something like the same advantage eBay has. The buyers and sellers will tend to gravitate to the largest platform. Frankly the self driving car thing is nothing but a pointless distraction from building their network as far as I can tell.

    From a publicity point of view, their defiance of the California DMV was pure genius.

    Perhaps but I think you'd have a hard time showing a causal relationship between that and Uber's bottom line.

    They need to be perceived as a gutsy company aggressively pursuing new tech.

    No they do not. They WANT to be perceived that way (for reasons that aren't entirely clear) but wants and needs are different things.

    1. Re:Valuation and network effects by Daetrin · · Score: 3, Informative

      You think there are few barriers to entry in their industry? I disagree. There are some pretty substantial network effects in play here. There are only so many drivers and cars to go around and they are going to tend to gravitate towards the company which is most likely to have the biggest user base. Sure, users can in theory switch easily but what good is switching to a taxi service that doesn't have any drivers?

      I don't use such services often, but when i do i go out of my way to use Lyft since they are at least a marginally less crappy company than Uber. A couple months ago i had to go on a series of business trips that required me to take Lyft back and forth to the airport multiple times. During those rides i noticed that most (or possibly all) of the cars had this weird white circles stuck to their windows with a small black box in the center and a "wire" coming out the side.

      I mentioned them to my SO a little later, and she'd seen the same circles on the windows of a number of cars around town. We very tentatively decided that they were some kind of GPS tracker to try and get better location data, though it seemed odd that the sticker attaching the device to the window would be so large.

      Fast forward a couple of weeks and we find out those are actually the new Uber logo. Which means that A: whoever is in charge of graphic design at Uber sucks and is incapable of coming up with a good logo, and B: there are drivers who have signed up for both Uber and Lyft and are switching between them on the fly, depending on who happens to have ride requests available at the moment. In fact based on (obviously biased) discussions i've had with Lyft drivers since then it's a very common practice. They prefer ride requests on the Lyft network since Lyft makes it easier to give tips but will happily pick up Uber customers as well if nothing better is available.

      So getting drivers for a new service is not a real barrier to entry, the only issue is convincing customers to request rides using it.

      --
      This Space Intentionally Left Blank
    2. Re:Valuation and network effects by Talderas · · Score: 1

      There are only so many drivers and cars to go around and they are going to tend to gravitate towards the company which is most likely to have the biggest user base. ...

      Frankly the self driving car thing is nothing but a pointless distraction from building their network as far as I can tell.

      I'm going to disagree with your assessment that self driving technology is a distraction. As you said, getting more players onto Uber is far more valuable. I don't think Uber is looking to make the capital investment into a fleet of self-driving cars but rather that they're looking at self-driving technology as a means to secure more drivers once self-driving vehicles become mainstream. If a driver has a self driving vehicle and has a choice between Uber, which allows him to send out his self-driving vehicle to earn money for him when he doesn't need to use it, or Lyft, which will only pay him when he's driving, I would believe the driver would select to use the Uber platform.

      --
      "Lack of speed can be overcome. In the worst case by patience." --Znork
  17. Law Breaking by StormReaver · · Score: 4, Insightful

    If you or I drove down a California street without a valid driver's license, the penalty would be anything from a ticket (first time offense, no injuries to others) to an arrest (multiple offender, injuring people) and possible incarceration.

    If the standard penalties were applied to whichever Uber executive authorized the law-breaking, then Uber would come into compliance rather quickly.

    1. Re:Law Breaking by wvmarle · · Score: 4, Insightful

      That is a general problem when it comes to laws broken by companies. No-one is personally responsible, no-one really cares. At worst the company goes bankrupt and those responsible take their severance packages and move on to the board of another company.

    2. Re:Law Breaking by Anonymous Coward · · Score: 0

      We need to set up laws to jail the entire fucking company. Like revoking it's business license and halting all trading for the duration of "incarceration." The board and C-level would pay attention to *that*.

    3. Re:Law Breaking by HiThere · · Score: 1

      Only if it included executive pensions and severance pay.

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
    4. Re:Law Breaking by kylemonger · · Score: 1

      That's what makes the idea of going after Uber under RICO so interesting. If they are going to act like a criminal organization, they should be treated like one. The provisions of RICO let you pierce the corporate veil and go after the upper-level decision makers.

  18. Smart move for them by ErichTheRed · · Score: 1

    I don't agree with Uber's business model, but they have explicitly stated from day 1 that regulations don't apply to them, "this time it's different", we're disruptors, etc. A move like refusing to follow the DMV's process will be seen by the company's true fans as a big middle finger to those "corrupt Luddite government organizations." It's the equivalent of taking your ball and going home.

    What will probably happen next is Uber will wallpaper smaller non-CA state/city officals' offices with money until they agree to let them operate. They'll turn around and say how progressive these cities are, and look at Luddite California...oh by the way we're moving to Texas/North Carolina/Georgia to spite them...

    I'd be fine with Uber if they paid their drivers as employees, followed the local taxi licensing procedures like all the other cab companies do, and incurred the same expenses a traditional cab company did to get into business. They make money because they just declare the rules don't apply to them. I see why too - so many people I meet in the tech sector are classic Ayn Rand devotees who basically want the government dismantled anyway. Most techies are obsessed with automation and productivity and have no idea that basically every business in the world has to follow rules, pay corrupt officials, and has startup costs.

    1. Re:Smart move for them by helga+the+viking · · Score: 1

      There is nothing innovative about the Uber model. Their ride matching algorithm is poor (regressive pattern matching algorithm with weighted outcomes = meh whatever) they just identified a market and monopolized exactly as the taxi companies did. But hey its 'an app' and f**k it in all those places around the world where real full time jobs are being lost... come in with a 19th century share cropping model. The middle man extracts the profit, owns the IP, runs the monopoly and relies on a bad low pay gig economy for people desperate enough to run a car making a loss to do the work. http://qz.com/312537/the-secre... http://bilbo.economicoutlook.n...

    2. Re:Smart move for them by k6mfw · · Score: 1

      I see why too - so many people I meet in the tech sector are classic Ayn Rand devotees who basically want the government dismantled anyway. Most techies are obsessed with automation and productivity and have no idea that basically every business in the world has to follow rules, pay corrupt officials, and has startup costs.

      Quote Of The Month!

      --
      mfwright@batnet.com
  19. Re:Pirst Fost by kilfarsnar · · Score: 1

    This article is not about Uber drivers. It's about Uber without drivers.

    That will be an improvement, if they can get it right!

    --
    "What the American public doesn't know is what makes them the American public." -Ray Zalinsky (Tommy Boy)
  20. Re:Pirst Fost by JoeMerchant · · Score: 1

    Uber sucks for the drivers, too... if they can pull this driverless thing off it will be better for so many people. Taxi drivers can retrain and get better jobs, and the clueless volunteers who drive for Uber can stop giving away the equity in their car for 90% return in fare payment - after expenses.

  21. Re:Pirst Fost by known_coward_69 · · Score: 1

    same in NYC

    except the drivers aren't amateurs. all the professional drivers here are the worst at following the rules. always been that way.

  22. What "better" jobs by Anonymous Coward · · Score: 0

    if they can pull this driverless thing off it will be better for so many people. Taxi drivers can retrain and get better jobs, and the clueless volunteers who drive for Uber can stop giving away the equity in their car for 90% return in fare payment - after expenses.

    What better jobs? They've all been automated away.

    1. Re:What "better" jobs by Anonymous Coward · · Score: 0

      if they can pull this driverless thing off it will be better for so many people. Taxi drivers can retrain and get better jobs, and the clueless volunteers who drive for Uber can stop giving away the equity in their car for 90% return in fare payment - after expenses.

      What better jobs? They've all been automated away.

      Someone has to fill the gas tanks and/or plug in the charger cables on the driver-less UBERs.....

    2. Re:What "better" jobs by Anonymous Coward · · Score: 0

      Yea.. the owner of the car. Those jobs died decades ago.

    3. Re:What "better" jobs by JoeMerchant · · Score: 2

      if they can pull this driverless thing off it will be better for so many people. Taxi drivers can retrain and get better jobs, and the clueless volunteers who drive for Uber can stop giving away the equity in their car for 90% return in fare payment - after expenses.

      What better jobs? They've all been automated away.

      Someone has to fill the gas tanks and/or plug in the charger cables on the driver-less UBERs.....

      And design and build the driverless cars, and service them, and recycle them, and administrate, regulate and inspect the businesses that do these things. In a future world, every automated taxi might be inspected by a human operator for quality control as often as three times a day... they won't be out there risking their lives and interacting with the public, but they could be checking the cleanliness and safety of the vehicle and holding it to a higher standard than today's taxis. In that same future world, you could choose which cab you hail based on its user ratings - auto-cabs that show up reeking of vomit and dog urine and/or vibrating harshly under braking or with dysfunctional climate control, would probably get less business.

    4. Re:What "better" jobs by Anonymous Coward · · Score: 0

      And design

      Iteratively simulated based on parameters set by data collected from windtunnel testing.

      and build

      Already done

      and service

      Depending on how the chassis was designed, this could be automated too. Especially with integrated wheel-motor modules that can be removed whole and replaced. Lift car, wheel-swapping robot swaps wheel. Or battery swapping robot swaps battery. Or dash-swapping robot, H/AC core swapping robot, etc.

      and recycle

      Probably automateable, but this one would be expensive since you'd need to build a set of robots that can tear apart the car. The value of recycling would have to exceed that to avoid shipping the whole crushed chunk to Asia.

      administrate, regulate and inspect

      Well, the CEO certainly won't be going anywhere, but without humans do you need an HR? Regulation and Inspection is the government's job, and there'll always be government employees, though my father told me that the plant he handles environmental control for, 95% of everything is "a goddamn endless excel spreadsheet that a monkey could copy and paste the numbers into if some other monkey hadn't disabled copying from the sensor program". In other words, the number from sensor NW-35 goes into cell C122 on worksheet 2. Also automateable.

    5. Re:What "better" jobs by Anonymous Coward · · Score: 0

      A robot can probably even do that better than a human.

    6. Re:What "better" jobs by MBGMorden · · Score: 1

      Almost everything in your list is napkin "yeah maybe we can automate that". Until you can make those things happen, that's just pessimistic thinking. Maybe in 100-150 years everything will be automated - but it isn't not, and whining about what's EVENTUALLY coming isn't helping anyways. For now, take a job that is still relevant, until there are none.

      --
      "People who think they know everything are very annoying to those of us who do."-Mark Twain
    7. Re:What "better" jobs by TWX · · Score: 1

      In a future world, every automated taxi might be inspected by a human operator for quality control as often as three times a day... they won't be out there risking their lives and interacting with the public, but they could be checking the cleanliness and safety of the vehicle and holding it to a higher standard than today's taxis.

      Yeah, right.

      The only passenger livery vehicles that will see this level of service will be the replacements for the sedan services. Right now, without a subscription those services cost approximately $60/ride in a high density city where the mileage is low. Let's pretend for a minute that a monthly subscription for that same metro area, with a reasonable amount of use, is that price per day instead of per ride, and that they're even polite enough to not charge commuter-customers for weekend use. That's 22 workdays a month, times $60. $1320 a month before taxes and other costs. Almost $16,000 per year.

      Everyone else gets low-end sedans that are not inspected terribly regularly. Cars that are vandalized with grafitti. Cars that have trash in them. Cars that have been pissed in or shat in or vomited in. Probably even the occasional car that people have had sex in. And the customer will be stuck because if they reject the disgusting car then they'll have to wait for the next car, and they have no guarantee that the next car will be any cleaner.

      As for attempting to seek compensation from those customers that have abused the car, good luck with that. It's very likely that over time any sort of video surveillance in the cars will degrade as vandalsim and simple equipment failure add up, and even if at one point the company had a policy of holding customers liable for damage, it will be inenforceable as they won't be able to prove who left the vehicle trashed.

      --
      Do not look into laser with remaining eye.
    8. Re:What "better" jobs by JoeMerchant · · Score: 1

      Somebody watched Blade Runner too many times.

  23. Cars that don't have autonomous should be banned. by bigpat · · Score: 1

    San Francisco bicyclists can breathe a sigh of relief now

    Yes, much better not to have cars that will automatically try to avoid hitting bicycles. People are much more reliable than machines... well except for the hundreds of thousands of times every year when people driven cars they hit people, other cars, and other stuff.

    Sarcasm... yes. As a society we should be mandating adoption of this technology and improving it, not treating it like a safety threat to be slowed down. In the next 5 years there should be a prohibition against allowing any car on the market that doesn't have autonomous collision avoidance features. Once we have cars that won't allow drivers to hit stuff unless the driver specifically disables that feature (like choosing to disable an air bag or not buckling your seat belt) then fully autonomous is a natural progression.

  24. Re:Cars that don't have autonomous should be banne by fluffernutter · · Score: 2

    If the Uber cars are really capable of avoiding cyclists, why does Uber not just say so? Also if their cars are so teachable why don't they just go through a couple proper turns with a pilot and resolve that issue forever more? If anything, regulation is highlighting some real glaring gaps in their implementation here and that's a good thing.

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
  25. Self Driving Pilot by pellik · · Score: 1

    I don't care if there's new technology in the car or not. The guy operating it is still a Driver not a Pilot.

  26. Re:Pirst Fost by rochrist · · Score: 1

    That's my standard response to Uber too!

  27. Re: Cars that don't have autonomous should be bann by Anonymous Coward · · Score: 0

    Maybe there should be mandatory automated safety features on bikes as well. And pedestrians! A $40-per-shoe automated collision prevention device should be mandatory for any pedestrian who wants to cross a road.

  28. Re:Cars that don't have autonomous should be banne by bigpat · · Score: 1

    If the Uber cars are really capable of avoiding cyclists, why does Uber not just say so? Also if their cars are so teachable why don't they just go through a couple proper turns with a pilot and resolve that issue forever more? If anything, regulation is highlighting some real glaring gaps in their implementation here and that's a good thing.

    Uber is saying that these are not autonomous cars as defined under the California regulations. For the purposes of the regulations these are cars with driver assist technology being operated by licensed drivers. For regulatory purposes this should be regulated the same way as all the other car companies that are offering some sort of driver assist technology. It would be a mismatch if you make Uber go through some licensing/certification process intended for fully autonomous vehicles if they are not fully autonomous vehicles. Sure maybe Uber is trying to live in some gray area of regulation, like they like to do, but it also seems that the regulators are trying to apply some standards that may not be applicable.

  29. Re:Pirst Fost by Anonymous Coward · · Score: 0

    Nobody's stopping the taxi drivers from retraining right now.

  30. Re:Cars that don't have autonomous should be banne by fluffernutter · · Score: 1

    As long as Uber is putting these cars on the road intending for them to one day be autonomous and in the name of training them to be autonomous, then they should be technically ready to be autonomous. If they are not technically ready to be autonomous then they need to go back to the drawing board and get better hardware.

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
  31. Re:Pirst Fost by tripleevenfall · · Score: 1

    From what I remember, this Johnnycab experiment ends in flames and explosions.

  32. Far from certain by sjbe · · Score: 1

    Autonomous vehicles would be a whole new business model for Uber,

    That might be fine if they had figured out a way to make their current business model profitable. Perhaps they will in due time but given the size of their losses so far that's not a certainty. It's rarely a good idea to try a second business model before you make the first one work.

    Any other company trying to launch a robot driven taxi fleet without all of these pieces in-place will be at a significant disadvantage to Uber. Anybody who thinks that robot taxis are "the way of the future" would be wise to invest in or partner with Uber to make it happen.

    I think that is far from a given. First off for Uber to have a sustainable competitive advantage they will have to find a path to profitability. Robot taxis aren't going to be a thing in even the most optimistic scenario for a number of years. If Uber can become the largest taxi service AND do so profitable AND not get sued into oblivion AND not run afoul of regulations then MAYBE they would be worth partnering with.

    1. Re:Far from certain by JoeMerchant · · Score: 1

      Everything in the future is far from a given.

      The question is: can Uber attract investment in their plan?

      The answer is up to the people with the money - I think they have a compelling enough case to separate hundreds of millions of dollars from willing investors. Is it a good idea, likely to succeed? Irrelevant, unless you are thinking about becoming one of those investors.

  33. Re:Pirst Fost by Strider- · · Score: 2

    As bad as Uber drivers may be, Taxi drivers are no better. At least around here, they're probably the worst, most poorly behaved drivers on the road. I took a cab home from the airport, a while back, and the idiot was speeding up the curb lane, speeding, pushing amber lights, cutting people off, etc... and then had the gall to be pissed off when I refused to tip him (I do not reward bad behaviour... had he driven like a sane person, I would have tipped him adequately). When I'm driving myself, I basically give cabs no quarter. Where I'd slow down a hair to be courteous to another driver to let them merge... with a cab? never. They shat their bed, and now have to live with it.

    IMHO, the regulations should be changed so that any car that passes the various standards (Safety, meter accuracy, insurance, etc... ) should be allowed to be a cab. The Taxi cartels need to be done away with, but also companies such as Uber need to operate in an adequate regulatory environment to preserve public safety. Rates should be regulated, and drivers should be fairly compensated. And any traffic fines should be strictly enforced, and doubled, for professional drivers.

    --
    ...si hoc legere nimium eruditionis habes...
  34. Re:Pirst Fost by Anonymous Coward · · Score: 1

    As bad as Uber drivers may be, Taxi drivers are no better. At least around here, they're probably the worst, most poorly behaved drivers on the road.

    Taxis are labeled as taxis, therefore we drivers are informed to expect that this vehicle will behave stupidly and like an asshole. Ubers are not labeled as such and appear like ordinary traffic vehicles and therefore we don't have forewarning that these vehicles may attempt idiotic maneuvers that typical traffic would not.

  35. Re:Cars that don't have autonomous should be banne by bigpat · · Score: 1

    As long as Uber is putting these cars on the road intending for them to one day be autonomous and in the name of training them to be autonomous, then they should be technically ready to be autonomous. If they are not technically ready to be autonomous then they need to go back to the drawing board and get better hardware.

    I've never heard a better description of a catch 22.

    So, should we take every car off the road that has collision avoidance technology just because car manufacturers are collecting data with the intent of someday making the cars fully autonomous? This is technology meant to save lives. Seat belts and airbags also had their problems and failed to save lives under particular circumstances and with defects, but if we had used your criteria of provable perfection then a lot of people would be dead that didn't need to be.

  36. Re:Pirst Fost by TheRaven64 · · Score: 3, Insightful

    Taxi drivers can retrain and get better jobs

    If retraining and getting a better job is an option for unemployed taxi drivers, why isn't it a good option for employed taxi drivers?

    --
    I am TheRaven on Soylent News
  37. Re:Cars that don't have autonomous should be banne by fluffernutter · · Score: 1

    Seat belts and airbags are not an apt comparison because they were always intended to be a cheap and basic solution. Autonomy is the exact opposite of that. It is hard to see if it can ever be adopted to the extent that will save a significant amount of lives. Therefore it shouldn't even enter into consideration at this point.

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
  38. Re:Pirst Fost by JoeMerchant · · Score: 4, Insightful

    Actually, their soul sucking jobs are stopping them from retraining. If you spend 12 hours a day waiting on fares, you can't be studying or practicing other skills.

  39. Re:Pirst Fost by JoeMerchant · · Score: 1

    Taxi drivers can retrain and get better jobs

    If retraining and getting a better job is an option for unemployed taxi drivers, why isn't it a good option for employed taxi drivers?

    Because employed taxi drivers are employed? What are they going to pay the landlord and the grocer with while they retrain?

  40. Don't fsck Uber Re:Pirst Fost by Anonymous Coward · · Score: 0

    Having carnal relations with a corporation is just gross. Yes, I know the courts consider them "legal persons" but it's still unnatural. In a word, ewww.

    And don't even get me started on having such relations with an automobile. The tailpipe is NOT to be abused in that manner. But if you try and you get your wee-wee burned off, well, tough.

  41. Re:Cars that don't have autonomous should be banne by bigpat · · Score: 1

    Seat belts and airbags are not an apt comparison because they were always intended to be a cheap and basic solution. Autonomy is the exact opposite of that. It is hard to see if it can ever be adopted to the extent that will save a significant amount of lives. Therefore it shouldn't even enter into consideration at this point.

    In what way is putting an explosive charge to inflate a bag in the steering wheel seem like a basic solution? That is some very precise engineering.

    I don't see a few cameras, maybe a bit of lidar, with some coding to not hit stuff as too complicated. If you code it the right way then worst case it should stop when it sees something in its path. Cars are very complex systems already.

  42. Overly optimistic by sjbe · · Score: 2

    saying "actually owning the vehicles would cost a ton of money for no obvious benefit to Uber" is not true. Simple math shows they would make a killing. Even if you estimate that they average a measly $15/hr with their autonomous cars, working an average of 20 hours per day, 50 weeks/yr, that's $105,000 per year. I think that's what they call profitable.

    I'm a certified cost accountant. Lot of problems with your analysis.

    First off there are no autonomous vehicles to buy and we don't know when there will be. It is unlikely they will be cheap especially at first. Even once they become available there will be regulations and legal issues to sort out before they can become a viable business. It's going to be a while.

    Second you did not consider costs at all. We don't know what the cost of an autonomous vehicle will be. You did not consider costs at all. You didn't consider the cost of fuel, the cost of insurance, the cost of engineering, the cost of administration, legal costs, the cost of maintenance, the cost of financing, the cost of regulations, and a host of other costs. Profits are revenue minus costs so until you properly consider costs your analysis is farcical. I can generate huge revenues by selling $2 bills for $1. I'll also be bankrupt in no time at all.

    Third, demand will not be constant and average utilization is unlikely to be anywhere close to your rosy estimates. A substantial portion of the time the car is going to be driving unoccupied to pick up passengers. It's going to have down time to refuel. It's going to have down time for maintenance. It's going to break down now and then. It's going to get vandalized. There are going to be substantial periods where there are no fares to get. The list goes on and on. You are assuming an extremely naive best case scenario that is unlikely to exist in the real world.

    $105K sounds like a lot but consider that even if we take your overly rosy assumptions about utilization and assume the car averages a modest 20mph during that time period it will cover something like 140,000 miles during that year. So you will have to replace the vehicle in just over a year most likely even assuming it performs exceptionally well. Few cars last much beyond 200K miles. We have no idea how reliable the navigation equipment on an autonomous car will prove to be. My guess is that there will be all sorts of problems with sensors going bad, getting covered with gunk and snow, etc. An autonomous vehicle will almost by definition be less reliable than an identical vehicle without the extra equipment.

    Finally, I stand by my statement that there is no competitive advantage to Uber in owning their taxis. It adds a lot of cost and reduces their margins. What's to prevent GM from simply making and operating their own taxi service? Not like Uber is going to get self driving cars cheaper than GM will. Uber's advantage right now is that they don't have to buy any cars. There are only so many drivers and cars out there to utilize and Uber is the biggest fish in that pond. This gets them network effect advantages and keeps their costs (relatively) low. If they have to buy the cars then the network effect advantages of tying up all those cars as Uber drivers (rather than Lyft) goes away. Then they are just another taxi service with some fancy cars. It takes a huge amount of money to buy a gigantic fleet of cars which then has to compete against what they already had. It makes no sense.

  43. Re:Cars that don't have autonomous should be banne by fluffernutter · · Score: 1

    Well they haven't made it work yet with "a bit of lidar", so there is no proof of concept for that. They can't even figure out whether to place a lidar sensor on the vehicle so that it sees everything from a low hanging bridge to a ground squirrel. On the contrary, they had a working prototype of both a seatbelt and the 'super complicated' air bag device before putting them into consumer vehicles.

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
  44. Predictability in business by sjbe · · Score: 1

    Everything in the future is far from a given.

    Not true at all. I can tell you with with a reasonably narrow set of error bars what the income and profitability of Coca-Cola Corporation will be for the next few years. Their business is very stable, predictable, and proven. I could probably make a pretty good guess what their balance sheet will look like 10 years from now.

    Uber? No idea. Anyone who tells you they can tell you what Uber's profitability will look like is full of crap. Especially when we are talking about them building a business around a technology that doesn't even exist yet outside of the laboratory. Any investor in Uber is basically taking a huge chance on a very speculative venture. Nothing wrong with that but it's anything but predictable.

    The question is: can Uber attract investment in their plan?

    Just because they can attract investment does NOT mean the plan will work. Ask any venture capitalist an they will tell you that maybe 1 of ever 10 companies they invest in turns into a good business. One or two more maybe do better than break even. The rest go down in flames. Investment dollars do not in any way ensure success.

    1. Re:Predictability in business by JoeMerchant · · Score: 1

      The main problem with investing in Uber is that it is so well known that it will likely get a higher valuation than it is truly worth, given the risk of failure. So, I won't likely be investing. But, many people will.

      The safer thing to invest in are all the companies that will benefit from Uber's robot driver ramp up and probable failure.

      Doesn't mean they're bad, or evil, just typical.

  45. Re: Pirst Fost by Anonymous Coward · · Score: 0

    Why not, they're just waiting?

  46. Re:Pirst Fost by TWX · · Score: 1

    And its language left a bit to be desired too...

    --
    Do not look into laser with remaining eye.
  47. Re: Pirst Fost by Anonymous Coward · · Score: 0

    How can you be an unemployed taxi driver?
    If you're a taxi driver you're employed to drive taxis. If you're unemployed you're not employed to do anything by definition.

  48. Re: Pirst Fost by Anonymous Coward · · Score: 0

    Uber, for me, has lately, started sucking. Years ago, you got picked up by a (mostly) guy who you could understand, knew the roads, could fucking see at night, had the right equipment (ez-pass here on the east, phone holder), and could drive.

    All - and I mean ALL - of my drives lately have been awful. I actually put this on Uber to police.

    I have no hope, but am gonna try lyft.

  49. Re: Pirst Fost by Anonymous Coward · · Score: 1

    Cars don't really retain equity. Even if you leave it parked in the driveway and never use it, it will still lose value over time.

  50. Re: Pirst Fost by Anonymous Coward · · Score: 0

    Still better than Uber.

    If that crap is still going on in six months, I'll write and open source a ride sharing app myself for existing cabbies to use. I'll take 5% yo handle the CC fees.

    Or better yet, one of you can take the idea and execute first to save me the trouble.

  51. Re:Pirst Fost by Anonymous Coward · · Score: 0

    What are the unemployed taxi drivers going to pay the landlord and grocer with while they retrain?

    SOCIALIST UNEMPLOYMENT BENEFITS? ..why don't we just cut out the part where they're afraid for their families' and their own health, safety and shelter and help people move forward? I'm sure the economic benefits outweigh the costs. Right?

  52. Re:Pirst Fost by Anonymous Coward · · Score: 0

    with a laptop and a WIFI connection, sure you can.

  53. Re:Cars that don't have autonomous should be banne by Anonymous Coward · · Score: 0

    The other difference is that neither a seatbelt nor an airbag pose *any* risk of harming people *outside* the car. Autonomous vehicles pose quite a substantial risk of this type.

  54. Is a permit really necessary? by Anonymous Coward · · Score: 0

    The Uber tests have self-driving cars but all with drivers at the wheel. California wanted to force Uber to get permits for all their cars under the concept that they're self-driving. Uber is saying that the car with a driver is not self-driving. CA is using onerous regulation to line their pockets. Meanwhile, Uber can still drive in Pittsburgh.

  55. only Uber by beckett · · Score: 1

    Only Uber could lose a PR fight with the DMV.

  56. Re: Pirst Fost by tripleevenfall · · Score: 1

    But who's gonna fly it, kid? You?

  57. Re:Cars that don't have autonomous should be banne by Anonymous Coward · · Score: 0

    Uber is lying.

    Under the CA regulations, any vehicle which has the capability of operating autonomously is considered an autonomous vehicle.

    The fact that you have someone in the drivers seat ready to take over does not change that.

    Even if you were doing the driving, and the computer was just recording and analysing your actions at the time does not change that.

    -The fact that it has the capability of driving autonomously means it requires an autonomous vehicle testing permit.

  58. Re:Pirst Fost by thegarbz · · Score: 1

    Funny you've just described every car for hire service in the world be it Uber, limousine, local taxi's, or that douche bag with diplomatic plates blocking the street at lunchtime today.

    Nothing what you said is limited to Uber. It is almost universal in low paid, low skill, transportation services.

  59. Start of a monopoly? Maybe... by sjbe · · Score: 1

    So getting drivers for a new service is not a real barrier to entry, the only issue is convincing customers to request rides using it.

    That's the case now because a dominant player hasn't emerged just yet. But let's say hypothetically that Uber successfully gains enough of an edge that they are tying up a quorum of available drivers at a given time. This means that customers looking for a ride are going to increasingly not going to bother trying the smaller taxi companies because they will be less likely to get a ride when they need it. This means that the drivers are going to increasingly be forced to work with Uber and they've got a cycle going that basically reduces other ride share firms to niche roles. It's kind of like with eBay. The buyers and sellers increasingly are driven to use the same platform whether they prefer it or not.

    Now it might not go this way. It's possible that the taxi market will remain fragmented with multiple players kind of like it is today. But if that's the case then Uber probably won't remain a going concern as a business. They've kind of taken a shoot for the moon approach which if it works they will make a killing but if it doesn't they will lose a ton of money.

  60. Conflating issues by sjbe · · Score: 1

    I don't think Uber is looking to make the capital investment into a fleet of self-driving cars but rather that they're looking at self-driving technology as a means to secure more drivers once self-driving vehicles become mainstream.

    If that is the case then it makes even less sense. Why not just wait for someone to develop the technology (plenty of others working on it) and then just buy it when it is ready if the only purpose is to supplement their driver pool. Uber doesn't bring any special capabilities to the table here. The ONLY reason to do the research on self driving cars is if you plan to either produce products or license the technology to others. Is Uber planning to get into the car manufacturing business? Are they planning to supply technology to the car industry? None of this has ANYTHING to do with their current business model. The only thing that might make sense is if they are working on some sort of dispatch technology so that they can direct self driving cars to paying customers once the technology is ready. But compared to developing the self driving cars themselves that's a trivial endeavor.

    If a driver has a self driving vehicle and has a choice between Uber, which allows him to send out his self-driving vehicle to earn money for him when he doesn't need to use it, or Lyft, which will only pay him when he's driving, I would believe the driver would select to use the Uber platform.

    You are conflating two issues. Why Uber would need to be doing R&D on self driving vehicles is a completely separate issue from how self driving vehicles would be used within a taxi service. There is no obvious reason for Uber to be doing R&D on self driving vehicles. They have no special technical expertise in automotive R&D. Unless they are planning to develop some saleable technology out of the R&D then they are simply wasting their investors money on what amounts to a marketing boondoggle. Uber hasn't even figured out how to make their taxi business profitable and I'm supposed to believe they are a serious player in developing self driving cars? Makes zero sense.

  61. Re:Pirst Fost by syntotic · · Score: 1

    Oops! Are there MANY Africans involved in the CA DMV?? That explains it. I dislike Uber for a number of reasons. The objective one is observing in the nights that save taxicabs there is almost no transit in the streets, so taxicabs are just noise not letting me assess how crowded or ghost town a city night is. Taxicabs seem to be doing a covering lately (all points covered at regular intervals, no random interval without taxicabs showing up, etc.). I feel it dangerous, and then they have many Indians (a kind of Africans) driving, so it is double dangerous. This gives me the impression there was NOT a conflict of interests between Uber and the DMV BUT between Uber administration AND the public vs Uber workers AND the DMV. We want self driving cars, in fact if ALL cars were self driven... I am sure cyclists can be handled different ways and they will STILL cause accidents because cycling is freeer movement than car driving.

  62. Re:Pirst Fost by peawormsworth · · Score: 1

    How do you identify Uber drivers?

    I never seen Uber and would like to know how to spot them, outside of their bad driving habits.