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Photo-illustration: Mercedes-Benz

Daimler will build—and operate—a fleet of self-driving Mercedes-Benz cars within the Uber network.

That role makes this deal the first of its kind: Daimler would not only do the design and manufacturing work but also assume all the costs associated with the fleet. Contrast that with the agreement between Uber and Volvo, in which the two companies collaborated on building the self-driving XC90 SUV, which Uber is now testing—and presumably will operate on its own. Lyft, a rival ride-hailing service, has a similar collaboration with General Motors.

The Mercedes robocars are to hit the roads “in the coming years,” Travis Kalanick, founder and chief executive of Uber, wrote on his blog. In other words, not for a while.

The arrangement addresses a problem in robotaxi service that’s often swept under the rug: When automation replaces the Uber driver, who will shoulder the many costs that the driver used to bear?

“Cars, whether autonomous or not, cost a lot of money which has to be paid to the manufacturer before they go into a fleet,” veteran auto industry analyst Mary Anne Keller wrote in September, on LinkedIn. “A small fleet of 100,000 vehicles at US $40,000 per unit amounts to $4 billion that would have to be paid by some entity.”

And the costs don’t end with the purchase of the car. “There is a myth among some tech geeks that electric cars don’t need service,” Keller continued. “Tesla has demonstrated that in fact they need maintenance. Despite all the sensors and millions of lines of code and a large battery, they still have wheels and tires, brakes and other mechanical parts, and fluids that require replacement or adjustment.”

Besides normal wear and tear, rental cars get a lot of abuse from their customers; that’s why rental car services check the car before and after you’ve rented it and charge for every new ding in the metal and every new stain on the upholstery. Today the Uber owner-driver takes care of such chores; in the day of the robotaxi that headache will devolve to the fleet operator—in this model, Daimler.

Already cars are coming with inward-facing sensors designed to check on the driver and make sure he’s got his eyes on the road. In future, robotaxis may also be checking on that jumbo Slurpee you’re clutching—and noting down every sticky drop that spills on the carpet.

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We Need More Than Just Electric Vehicles

To decarbonize road transport we need to complement EVs with bikes, rail, city planning, and alternative energy

11 min read
A worker works on the frame of a car on an assembly line.

China has more EVs than any other country—but it also gets most of its electricity from coal.

VCG/Getty Images

EVs have finally come of age. The total cost of purchasing and driving one—the cost of ownership—has fallen nearly to parity with a typical gasoline-fueled car. Scientists and engineers have extended the range of EVs by cramming ever more energy into their batteries, and vehicle-charging networks have expanded in many countries. In the United States, for example, there are more than 49,000 public charging stations, and it is now possible to drive an EV from New York to California using public charging networks.

With all this, consumers and policymakers alike are hopeful that society will soon greatly reduce its carbon emissions by replacing today’s cars with electric vehicles. Indeed, adopting electric vehicles will go a long way in helping to improve environmental outcomes. But EVs come with important weaknesses, and so people shouldn’t count on them alone to do the job, even for the transportation sector.

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