Uber's founding proposition was that a transport company need not own vehicles. Drivers supplied the cars, Uber supplied the software, and the absence of a fleet on the balance sheet was the whole point. That proposition is now being abandoned at a cost of more than $10 billion. The Commitment Uber will invest over $10 billion in autonomous vehicles, according to reporting by the Financial Times. Roughly $7.5 billion is allocated to procuring the vehicles themselves, with more than $2.5 billion going into equity investments in Lucid, Rivian and other manufacturers. The target is 120,000 autonomous vehicles deployed over the coming years, with robotaxis operating in 15 cities. Chief executive Dara Khosrowshahi has said Uber intends to carry the largest share of autonomous vehicle trips globally by 2029. Why The Model Had To Change The asset-light structure worked because the marginal cost of adding capacity was borne by drivers. Uber matched supply to demand through pricing and took a cut. It never had to finance a car. Trending Stories Autonomous vehicles break that arrangement at its foundation. There is no driver to buy the vehicle, insure it, maintain it or absorb its depreciation. Somebody has to own the fleet, and if Uber does not, then whoever does owns the customer relationship — and Uber becomes a booking layer on top of someone else's asset, in a market where the asset is the scarce thing. Waymo's expanding presence across US cities and Amazon's Zoox scaling its purpose-built vehicles have made that risk concrete. Both operate their own fleets and their own apps. A rider who opens Waymo directly has no reason to open Uber at all. The Diversification Strategy Khosrowshahi has been explicit about not wanting dependence on any single autonomous vehicle developer: ‘We want to make sure that we’re not