Of course it will be high. Transit is a huge market. They would just need a small share of Uber, lyft, regular taxis, public transit.
Uber makes money on every ride.
Teslas Robotaxi has to be cheaper than a taxi with a human and i don't think they will be able to have a lot higher revenue per ride than uber. Not 9x
And if Tesla starts to deliver a robotaxi, all of this revenue has to be shared between taxis, uber, Tesla, Waimo, Zoox, Rimac, Cruise, Baidu, WeRide, ...
So how huge is the market for Tesla to be valuated 9x higher than Uber?
We can even combine a big car company, a robotics company, a solar roof company, battery storage company, ETruck and a robotaxi company and STILL don't get to the same valuation than Tesla currently has.
Teslas share price is math for stupid people.
Why would Tesla need to have higher revenue per ride than Uber? The value of a company is driven (ultimately) by its profit, not its revenue. And Tesla doesn't have to give the majority of the fare to the driver.
Higher costs means higher revenue is necessary to break even. It's basic math. Don't even need to get to first order principles.
And, also, Tesla car owners will be able to use their POVs as part of the Robotaxi network, for which Tesla will get a cut of the fare.
So yes, there's a surprising contingent of people who commute to work every single working day using hire cars.
This is information that suggests that Uber does not compete with public transit
I think my grandma could easily afford this, but there would have been others considering dragging the shopping onto the bus.
The point is taxis supplement and can replace public transport for low-income or unable-to-drive people in some situations — not necessarily every day.
Typically this word means that the product or service broadly serves same market in some way that overlaps. It isn't typically used so narrowly to imply that the products/services are directly replaceable in all ways.
It's possible they'll be even cheaper but that range is the cost according to the IRS of operating a typical vehicle all in, and that seems like a reasonable guess of the cost of an autonomous electric vehicle with far lower probability of crash than a human (all the savings basically going to profit margin).
At ~60¢/mi, there'd be a lot of people who would save money on balance using autonomous taxis to get everywhere vs owning a private vehicle (10k mi/yr would cost only ~$6k/yr, a pretty low cost of ownership/use for a private vehicle).
But I calculated traveling 2 times a week, of course at the commute time everyone else commutes and public transport costs 50 Euros per month.
My company car though costs 200 Euros + 100 Euros energy.
Im pretty sure cybertaxi can't and will not provide 40 cents / mi in high demand times, for middle class paying more mone for the convinince of having your own car is still cheap and if i need to do anything further away like any trip, it will be expensive again.
And all of these cybertaxis have to live somewere.
The math doesn't make sense already.
So even if prices plunge, thus encouraging people to take more self driving cabs vs other things because of the fixed road size you immediately induce severe traffic, which discourages people and sets a ceiling on adoption as people pick more efficient alternatives.
As others have said, they definitely compete in the same market.
Waymo is already there, just needs to scale and they are already cooperating with Uber.
>public transit
Unless Musk develops the shrink ray it will never compete with actual high throughput public transit, for the same reason if jets flew themselves we wouldn't commute by air. The cost of drivers per fare is less than in a private car, so the benefits for a bus are lesser. Modern metros are already autonomous.