logo
Uber's new shuttles look suspiciously familiar to anyone who's taken a bus

Uber's new shuttles look suspiciously familiar to anyone who's taken a bus

Yahoo03-06-2025
Every few years, a Silicon Valley gig-economy company announces a 'disruptive' innovation that looks a whole lot like a bus. Uber rolled out Smart Routes a decade ago, followed a short time later by the Lyft Shuttle of its biggest competitor. Even Elon Musk gave it a try in 2018 with the 'urban loop system' that never quite materialized beyond the Vegas Strip. And does anyone remember Chariot?
Now it's Uber's turn again. The ride-hailing company recently announced Route Share, in which shuttles will travel dozens of fixed routes, with fixed stops, picking up passengers and dropping them off at fixed times. Amid the inevitable jokes about Silicon Valley once again discovering buses are serious questions about what this will mean for struggling transit systems, air quality, and congestion.
Uber promised the program, which rolled out in seven cities at the end of May, will bring 'more affordable, more predictable' transportation during peak commuting hours.
'Many of our users, they live in generally the same area, they work in generally the same area, and they commute at the same time,' Sachin Kansal, the company's chief product officer, said during the company's May 14 announcement. 'The concept of Route Share is not new,' he admitted — though he never used the word 'bus.' Instead, pictures of horse-drawn buggies, rickshaws, and pedicabs appeared onscreen.
CEO Dara Khosrowshahi was a bit more forthcoming when he told The Verge the whole thing is 'to some extent inspired by the bus.' The goal, he said, 'is just to reduce prices to the consumer and then help with congestion and the environment.'
But Kevin Shen, who studies this sort of thing at the Union of Concerned Scientists, questions whether Uber's 'next-gen bus' will do much for commuters or the climate. 'Everybody will say, 'Silicon Valley's reinventing the bus again,'' Shen said. 'But it's more like they're reinventing a worse bus.'
Five years ago, the Union of Concerned Scientists released a report that found ride-share services emit 69 percent more planet-warming carbon dioxide and other pollutants than the trips they displace — largely because as many as 40 percent of the miles traveled by Uber and Lyft drivers are driven without a passenger, something called 'deadheading.' That climate disadvantage decreases with pooled services like UberX Share — but it's still not much greener than owning and driving a vehicle, the report noted, unless the car is electric.
Beyond the iffy climate benefit lie broader concerns about what this means for the transit systems in New York, San Francisco, Chicago, Philadelphia, Dallas, Boston, and Baltimore — and the people who rely on them.
'Transit is a public service, so a transit agency's goal is to serve all of its customers, whether they're rich or poor, whether it's the maximum profit-inducing route or not,' Shen said. The entities that do all of this come with accountability mechanisms — boards, public meetings, vocal riders — to ensure they do what they're supposed to. 'Barely any of that is in place for Uber.' This, he said, is a pivot toward a public-transit model without public accountability.
Compounding the threat, Philadelphia and Dallas have struggling transit systems at risk of defunding. The situation is so dire in Philly that it may cut service by nearly 45 percent on July 1 amid a chronic financial crisis. (That, as one Reddit user pointed out, would be good news for Uber.)
Meanwhile, the federal government is cutting support for public services, including transit systems — many of which still haven't fully recovered from COVID-era budget crunches. Though ridership nationwide is up to 85 percent of pre-pandemic levels, Bloomberg News recently estimated that transit systems across the country face a $6 billion budget shortfall. So it's easy to see why companies like Uber see a business opportunity in public transit.
Khosrowshahi insists Uber is 'in competition with personal car ownership,' not public transportation. 'Public transport is a teammate,' he told The Verge. But a study released last year by the University of California, Davis found that in three California cities, over half of all ride-hailing trips didn't replace personal cars, they replaced more sustainable modes of getting around, like walking, public transportation, and bicycling.
And then there's the fact cities like New York grapple with chronic congestion and don't need more vehicles cluttering crowded streets. During Uber's big announcement, Kansal showed a video of one possible Route Share ride in the Big Apple. It covered about 3 miles from Midtown to Lower Manhattan, which would take about 30 minutes and cost $13.
But here's the thing: The addresses are served by three different subway lines. It is possible to commute between those two points, avoid congestion, and arrive sooner, for $2.90. So, yes, Uber Route Share is cheaper than Uber's standard car service (which has gotten 7.2 percent pricier in the past year) — but Route Share is far from the most efficient or economical way to get around in the biggest markets it's launching in.
'If anything,' Shen said, 'it's reducing transit efficiency by gumming up those same routes with even more vehicles.'
This story was originally published by Grist with the headline Uber's new shuttles look suspiciously familiar to anyone who's taken a bus on Jun 3, 2025.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Elon Musk urged businesses to ditch Delaware. Nevada saw an opportunity.
Elon Musk urged businesses to ditch Delaware. Nevada saw an opportunity.

Yahoo

time23 minutes ago

  • Yahoo

Elon Musk urged businesses to ditch Delaware. Nevada saw an opportunity.

Elon Musk urged businesses to leave Delaware after a 2024 clash with its Court of Chancery. Other states, like Nevada, are eager to attract those corporations. Clark County, home to Las Vegas, is building an innovation district focused on tech. Elon Musk has made his feelings about the state of Delaware clear. "Companies should get the hell out of Delaware," Musk wrote last August on X. Although Delaware's Secretary of State told Business Insider its role as the "corporate capital of the world" is not under threat, states like Wyoming, Texas, and Florida — and especially Nevada — have emerged as popular alternatives. Musk's unhappiness with Delaware began in 2024 after a judge for the state's Court of Chancery denied his multi-billion-dollar pay package. In response, Musk attacked the court on X and advised others to avoid incorporating in Delaware. The billionaire has since moved Tesla and SpaceX to Texas. Musk wasn't the only business leader ready to ditch Delaware, as it turns out. VC firm Andreessen Horowitz announced its departure from the state in July, saying recent rulings in the Court of Chancery undermined its "reputation for unbiased expertise." Roblox, Dropbox, and Trump Media have also left Delaware. Delaware is considered a premier state for businesses to incorporate, in part, because of the Delaware General Corporation Law. The business-friendly statute is the foundation of its corporate law. While there are various reasons a business might incorporate outside Delaware, Musk and companies like Andreessen Horowitz said they are seeking a more favorable legal landscape. Nevada sees an opening Some of the companies that have left Delaware have chosen Nevada as their new corporate home. Andreessen Horowitz is one. The company said in its blog post that Nevada law provided less "legal uncertainty" than Delaware. Bill Ackman, the billionaire CEO of Pershing Square Capital Management, said in February that his firm would also move from Delaware to Nevada. "Top law firms are recommending Nevada and Texas over Delaware," Ackman posted to X at the time. Nevada isn't just seeking companies to incorporate there, however, it also wants to attract their offices and workers. "What it's about is making sure that we're not just getting those businesses to incorporate on paper, but we also want their physical assets here," Clark County Commissioner Michael Naft told Business Insider. Clark County is home to Las Vegas. Len Jessup, a general partner with Desert Forge Ventures, which is based in Las Vegas and invests in early-stage companies, told Business Insider that he's seen more corporations choose Nevada as a home. "We've seen founders moving here — a lot of them from California because it's adjacent — but they're coming from all over," Jessup said. They're being drawn to Nevada for a variety of reasons, including no state income tax on individuals, no capital gains tax, and what Jessup described as lighter regulations. While Nevada doesn't have an individual income tax, it does enforce a commerce tax on businesses earning more than $4 million in gross revenue. Lindsey Mignano, a founding partner of SSM Law PC who represents emerging tech companies, said the different tax structures "may make less of a difference" in the early stage because "revenue is not yet high, but at the later stages of a company's lifecycle, this can absolutely add up." Clark County is hoping to draw more companies to the region by developing what it's calling an "innovation district." "It has been something that we've been really methodical about. We've gotten stakeholders together, but at the end of the day, Clark County's innovation district is really about lifting up what's happening here organically and using those assets to attract more like-minded businesses and individuals to be part of that space," Naft said. For Jessup, getting companies to incorporate in Nevada is a way to expand the state's economy, which mostly relies on its hospitality and tourism industries. "My goal is, 10 years down the road, I want to have helped to create companies in tech and biotech — so, outside of gaming, hospitality, sports, and entertainment — that add to the ecosystem and help to diversify the economy," Jessup said. The Las Vegas Convention and Visitors Authority reported that the number of visitors declined 11.3% this June compared to the same time last year. "The state still does these cycles of boom and bust. I'd like to see us add more companies locally, like Switch's data center company, that are a little bit more recession-resistant," Jessup said, referring to the AI, cloud, and data center company. Naft said officials are still determining details about the Clark County innovation district, but are hopeful it could help solidify it's foothold as a business capital. "We want to make sure that people understand that we are open to new ideas," he said. Read the original article on Business Insider

Thinking of Buying Tesla Stock? Here Are 2 Red Flags to Watch
Thinking of Buying Tesla Stock? Here Are 2 Red Flags to Watch

Yahoo

time40 minutes ago

  • Yahoo

Thinking of Buying Tesla Stock? Here Are 2 Red Flags to Watch

Key Points Tesla's heavy reliance on Elon Musk adds significant leadership risk. Increasing competition from established automakers and Chinese EV makers is pressuring Tesla's dominance. Investors need to be comfortable with Tesla's high valuation. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) has long been the front runner in the electric vehicle (EV) revolution in the U.S. Its innovation, brand strength, and rapid growth have made it a favorite among investors. Yet, despite its impressive track record, there are two big risks that investors should carefully consider before buying Tesla stock today. 1. The Elon Musk factor Elon Musk's leadership is often cited as Tesla's greatest strength -- and, paradoxically, one of its most significant vulnerabilities. Musk's vision and hands-on approach have driven Tesla's technological breakthroughs and ambitious expansion. However, this heavy reliance on a single individual introduces what investors refer to as "key man risk." If Musk were to step back from daily operations or shift his focus to other projects, Tesla might face challenges in maintaining its momentum. Though Tesla's management team has grown stronger, few executives command the same vision, drive, and public attention as Musk. Recently, Musk's increasing involvement in political activities has raised concerns about potential distractions or reputational risks for Tesla. While the company has remained operationally strong, these developments underscore the uncertainty around its future leadership continuity. While Tesla's success lies not only with Musk but also with his team, which has executed well on his vision -- no one can build a trillion-dollar company alone -- there is still no clear successor (or a viable management team) . The silver lining here is that the Tesla board has become more serious about finding one in recent months, largely due to the CEO's active involvement in politics. For investors, this means that Tesla's fortunes remain closely tied to Musk's presence and decisions -- a factor that adds a layer of risk to the investment. 2. Intensifying competition Tesla might have been an early mover in the EV industry, but its dominance is no longer guaranteed. The industry landscape is rapidly evolving, with legacy automakers and new entrants accelerating their electric ambitions. Companies like Ford and General Motors are aggressively expanding their EV lineups. For instance, Ford plans to introduce a $30,000 midsize truck by 2027. That price is significantly lower than the average for an EV, and Ford is investing $5 billion in its EV production to make it happen. GM, on the other hand, is working hard on next-generation battery technologies to improve range, charging performance, and cost. Meanwhile, Chinese manufacturers such as BYD are growing their international footprints, particularly in Europe, where Tesla experienced a nearly 27% sales declinein July 2025. BYD's battery technology, government support, and competitive pricing make it a formidable challenger. In addition, a host of EV start-ups are innovating in battery tech, autonomous driving, and new business models, further intensifying competition. While Tesla is not sitting still -- it is working on becoming the lowest-cost producer by cutting prices to grow sales volume and achieve economies of scale -- there is no guarantee that it can maintain its market share over time. In short, it's no longer the only player in town. What does this mean for investors? Tesla's story remains compelling: It's a pioneer with a powerful brand, innovative products, and potential optionality with some of its long shot bets (robotaxi, humanoid robots, etc). But the key man risk surrounding Musk and the escalating competitive landscape are real concerns that investors can't ignore. If Tesla continues to innovate more rapidly than its rivals, the company could sustain its growth trajectory. However, any leadership changes or slips in market position could hurt the business and its share price. While these two risks don't necessarily call for the sale of the stock, they do mean that investors should think carefully before buying the stock today. Tesla stock trades at a significant premium valuation to other carmakers. For perspective, Tesla has a price-to-sales (P/S) ratio of 12.9, compared to GM's 0.3. Unless you're comfortable with the risks and the high valuation, buying the stock today may not be a prudent decision. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $467,985!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $44,015!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $668,155!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of August 13, 2025 Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company and General Motors. The Motley Fool has a disclosure policy. Thinking of Buying Tesla Stock? Here Are 2 Red Flags to Watch was originally published by The Motley Fool

Week in Review: Most popular stories on GeekWire for the week of Aug. 10, 2025
Week in Review: Most popular stories on GeekWire for the week of Aug. 10, 2025

Geek Wire

timean hour ago

  • Geek Wire

Week in Review: Most popular stories on GeekWire for the week of Aug. 10, 2025

Get caught up on the latest technology and startup news from the past week. Here are the most popular stories on GeekWire for the week of Aug. 10, 2025. Sign up to receive these updates every Sunday in your inbox by subscribing to our GeekWire Weekly email newsletter. Most popular stories on GeekWire Reports of stricter Microsoft return-to-office policy add to post-layoff uncertainty Is Microsoft about to shake up its workforce again? A new report this week by The Verge is adding to the speculation that the company is preparing to tighten its return-to-office policy, potentially requiring most employees at its Redmond headquarters to be on-site at least three days a week starting in January. In response to an inquiry from GeekWire, a Microsoft spokesperson confirmed that the company is reviewing its flexible work guidelines, as it has in the past, but said no final decisions have been made. … Read More Photos: Inside the Allen Institute for AI's new HQ in Seattle's first mass-timber office building It was a big news week for Seattle's Allen Institute for Artificial Intelligence (Ai2), including the announcement of a new AI robotics initiative and a landmark grant from Nvidia and the National Science Foundation to lead the creation of the future AI backbone for U.S. … Read More

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store