In the ride-hailing industry, Uber and Lyft dominate the market. Despite regulatory hurdles and profit challenges, both companies have significantly disrupted the traditional taxi service business model and practically created the gig economy. However, there might be a significant new player in town with the potential to knock the two down a few pegs: Elon Musk’s Tesla.
Musk unveiled his new vision — robotaxis — during a livestreamed event on Oct. 10. The plan is to build battery-powered Cybercabs without steering wheels, brake pedals, or accelerator pedals capable of ferrying passengers without a driver.
“It’ll be like sitting in a comfortable little lounge,” Musk said. “Yeah, it’s going to be awesome.”
Tesla intends to sell rides using its own fleet of driverless robotaxis, as reported by CNN. If that comes to fruition, the new competition could force Uber and Lyft to expand their own autonomous vehicle offerings or possibly seek partnerships with Tesla.
Additionally, Musk noted that the service would reduce …