Uber Reportedly Shopping Around For Self-Driving Mercedes-Benz Transportation Fleet

Uber allegedly has placed an order for a number of $100,000 Mercedes-Benz S-Class sedans, fueling speculation about the ride-sharing company's plans to ultimately field a fleet of self-driving automobiles.


Uber hat Berichten zufolge Einkaufen für eine Flotte von selbstfahrenden Autos in Deutschland (Uber has reportedly been shopping for a fleet of self-driving cars in Germany), according to Reuters.

It is unclear whether the ride-hail company wants to purchase cars that are already self-driving or traditional cars with some autonomous features.

Many German automakers, including Volkswagen’s Audi, Mercedes-Benz, and BMW, are working on their own autonomous vehicles.

Earlier, Germany’s Manager Magazin reported that Uber had placed an order for 100,000 Mercedes S-Class series with Daimler, citing unnamed sources at both companies, but another source told Reuters that report was inaccurate.

Manager speculated the order could cost Uber around 10 billion euros, or $11.3 billion. Uber declined comment on both stories.

It’s no secret that Uber is pursuing its own self-driving technology, using engineers it poached from Google and Carnegie Mellon University.

The company recently announced plans to expand its Pittsburgh facility to include a test track for driverless cars.

“Uber isn’t valued at more than $50 billion because it’s a ‘taxi app,’ but because investors see Uber as a logistics company.” - Adrian Gonzalez, Adelante SCM

Still, purchasing a fleet of cars, especially one of such size, has not been part of Uber’s playbook so far.

The company’s business model relies heavily on drivers using their own personal vehicles, or ones leased from for-hire vehicle companies.

If Uber buys a fleet of cars, its claims of being a technology company rather than a transportation company would become moot.

Also, S-Class vehicles are not self-driving (although they do have some autonomous features), nor are they the type of cars one would normally associate with ride-sharing services beyond Uber’s high-end black car service.

Mercedes has said that fully autonomous S-Class vehicles won’t be ready until 2020 - which is also the date that many analysts say we should begin to see self-driving cars available in public.

Source: The Verge

Related: Making the Leap to Uber Trucking
Making the Leap to Uber Trucking


Article Topics


Boston Consulting Group News & Resources

Sustainability Ignored by 40% of Procurement Leaders
Companies Targeting Supply Chain and Manufacturing for Cost Savings
Supply chains are facing new pressures as companies seek cost savings
The shift away from China is leading to India, notes Boston Consulting Group Report
Exports from India Grow as Companies Shift Away from China
BCG Report focuses on designing resilience into global supply chains
Innovative Companies 2020: The Serial Innovation Imperative
More Boston Consulting Group

Latest in Transportation

A Look at Baltimore’s Key Bridge Collapse—One Month Later
Baltimore Continues Bridge Recovery With Opening of New Channel
How Shippers Can Prep for Hurricane Season
UPS Struggles in First Quarter With Steep Earnings Decline
FedEx Announces Plans to Shut Down Four Facilities
The Two Most Important Factors in Last-Mile Delivery
Most Companies Unprepared For Supply Chain Emergency
More Transportation

The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization.



View Boston Consulting Group company profile

 

Featured Downloads

Unified Control System - Intelligent Warehouse Orchestration
Unified Control System - Intelligent Warehouse Orchestration
Download this whitepaper to learn Unified Control System (UCS), designed to orchestrate automated and human workflows across the warehouse, enabling automation technologies...
An Inside Look at Dropshipping
An Inside Look at Dropshipping
Korber Supply Chain’s introduction to the world of dropshipping. While dropshipping is not for every retailer or distributor, it does provide...

C3 Solutions Major Trends for Yard and Dock Management in 2024
C3 Solutions Major Trends for Yard and Dock Management in 2024
What trends you should be focusing on in 2024 depends on how far you are on your yard and dock management journey. This...
Packsize on Demand Packing Solution for Furniture and Cabinetry Manufacturers
Packsize on Demand Packing Solution for Furniture and Cabinetry Manufacturers
In this industry guide, we’ll share some of the challenges manufacturers face and how a Right-Sized Packaging On Demand® solution can...
Streamline Operations with Composable Commerce
Streamline Operations with Composable Commerce
Revamp warehouse operations with composable commerce. Say goodbye to legacy systems and hello to modernization.