Google Could Buy Uber to Win the Robotaxi Wars, Reuters Columnist Argues

Alphabet (NASDAQ:GOOGL) could buy Uber Technologies (NYSE:UBER), combining its Waymo robotaxi business with America’s largest ride-hailing network, Reuters Breakingviews columnist Jennifer Saba argued Tuesday.

The deal could benefit both companies. Waymo would gain Uber’s customers and expertise in running a ride-hailing service, while Uber would secure a place in a future where cars drive themselves.

The proposal comes as Waymo prepares to loosen the companies’ existing partnership, and as rivals including Tesla (NASDAQ:TSLA) and Amazon’s Zoox weigh on Uber’s stock, Saba wrote.

A Breakup That Could End in a Takeover

Waymo plans to end Uber exclusivity in Austin and Atlanta in January 2028. Waymo Co-CEO Tekedra Mawakana has called getting a driverless car through Uber “a little bit of a crapshoot,” because passengers can’t be sure they’ll get one.

And Uber is also looking beyond Waymo. “We want to make sure that we’re not dependent on one partner,” CEO Dara Khosrowshahi said in August. The company now has relationships with around 30 autonomous-vehicle developers.

But Saba argues the two companies have plenty to gain from joining forces.

Uber controls roughly 75% of the U.S. ride-hailing market, while Waymo operates an estimated 77% of the country’s autonomous-vehicle fleet. Combining them would bring together a huge customer base and the technology to serve it without human drivers.

There could be significant savings, too. Uber says driverless cars on its platform complete 30% more trips per day than comparable vehicles operating through their own services. With Waymo’s costing upwards of $100,000 each, keeping those cars busy could make a big difference to profitability.

The biggest hurdle is the cost of a takeover. Uber was valued at around $143 billion on Tuesday, meaning a deal with a hypothetical 25% premium could approach $180 billion.

Tesla’s Robotaxi Ambitions Meet a Reality Check

Elon Musk is betting heavily on robotaxis as Tesla looks beyond selling electric cars for growth.

Last week, Musk announced plans to wind down production of the Cybertruck at Tesla’s Texas factory by mid-2027 to make room for more Cybercabs. Tesla’s automotive sales revenue fell 1% in the third quarter.

Musk wants Tesla to operate its own driverless ride-hailing network, putting it in direct competition with Waymo and potentially cutting Uber out of the booking process.

But Polymarket traders give Tesla only single-digit odds of launching a qualifying driverless taxi service in California by Dec. 31. Tesla’s California rides still carry a safety driver.

A second Polymarket contract puts the strongest odds on Waymo operating in 12 to 15 cities at year-end. Alphabet said Waymo already operated in 15 major U.S. cities in October.

Saba argues a purchase would give Alphabet CEO Sundar Pichai a way to turn Waymo’s technology into a paying business, and give Uber a plan for a driverless future.

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