Automation is finally coming for the human rideshare driver.
Uber is cutting back on recruiting drivers in cities where autonomous vehicles, like those from Waymo, are operating, CEO Dara Khosrowshahi told Fast Company in an article published on Monday.
Having fewer new entrants in those markets ensures "that the drivers who are [already] in-market, who are experienced, and who've been with us through this whole journey continue to earn," Khosrowshahi told the magazine.
The comments provide evidence of what some ride-hailing drivers have long feared: The spread of robotaxis will mean fewer opportunities for them to earn a living.
It's not all bad news for rideshare drivers, however. Uber says that while it's recruiting fewer drivers, it's seen more drivers sign up as demand for the service grows.
Khosrowshahi said that human drivers in markets where Uber has added driverless cars, such as Atlanta and Austin, are busier than their counterparts in cities without the tech.
Drivers in those cities are "making more money," Khosrowshahi said on an episode of the "Invest Like the Best" podcast on Wednesday.
"The number of drivers joining the platform is increasing, because it looks like AVs are actually adding incremental demand to the platform," the CEO said, referring to autonomous vehicles.
An Uber spokesperson told Business Insider that both of Khosrowshahi's statements "can be true at the same time," adding that the company is reducing its marketing spending in some cities while seeing more drivers sign up for Uber on their own as they respond to increased rider demand.
Even with robotaxis, Uber says it will still need human drivers.
Andrew Macdonald, Uber's COO, said last year that the number of Uber drivers could rise in the coming years as more people choose to use ride-hailing services instead of owning cars.
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Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.
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