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

This story was originally published by Grist and appears here as part of the Climate Desk collaboration
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.'
Uber's new shuttles look suspiciously familiar to anyone who's taken a bus. #Uber #RouteShare
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.'

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Tesla Stock Poised to Maintain ‘Upward Momentum,' Says Top Analyst
Tesla Stock Poised to Maintain ‘Upward Momentum,' Says Top Analyst

Globe and Mail

timean hour ago

  • Globe and Mail

Tesla Stock Poised to Maintain ‘Upward Momentum,' Says Top Analyst

Alexander Potter believes that Tesla (TSLA) stock 'will likely sustain its upward momentum over the coming weeks' in his latest research note. The five-star analyst maintained his 'Buy' rating and $400 price target, which implies 22.5% upside potential from current levels. Potter ranks #444 out of the 9,636 analysts ranked on TipRanks. He boasts an average return per rating of 18.6% and a success rate of 48%. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Tesla stock has lost 19.2% year-to-date due to multiple issues. The electric vehicle (EV) maker has been facing some of its most ruthless trading weeks, marked by diminishing global auto deliveries, backlash against CEO Elon Musk 's political choices, and the most recent public showdown between Musk and President Donald Trump. Robotaxi Event Could Be a Make-or-Break for TSLA Potter highlighted that the firm's 'key component' of Tesla's robotaxi launch has started to play out. Tesla's autonomous robotaxis have been seen on the streets of Austin, Texas, and Musk has confirmed the deployment of the company's driverless taxis in the city. Having said that, the analyst warns that any high-profile robotaxi accident could likely trigger a 'violent downside' move in the stock price. A majority of analysts have assigned a premium valuation to Tesla's future price targets due to the highly anticipated robotaxi service. Both investors and analysts are excited about Tesla's foray into the full self-driving (FSD) technology. On June 10, Musk posted a video on X that showed Tesla's driverless taxis running on Austin's streets. At the same time, Musk revealed that the commercial launch date for the robotaxis would be June 22. Meanwhile, he also mentioned that Tesla is targeting to deliver its first-ever FSD vehicle to a customer's home by June 28. This vehicle, he said, will drive itself from the end of the factory line directly to a customer's home. Expectations are running high for Tesla's autonomous vehicle initiatives, while the company and its CEO remain highly cautious. 'We are being super paranoid about safety, so the date could shift,' Musk wrote on X on Tuesday. Following its success in Austin, Tesla aims to roll out the robotaxi service to other cities. Is it a Good Idea to Buy Tesla Stock? Analysts remain cautious about Tesla's long-term stock trajectory owing to various challenges. However, the rift between Musk and Trump seems to have eased, with the former backtracking on his rather critical comments about the President. Meanwhile, the President has also confirmed that he would not be canceling SpaceX's contracts, nor will he sell the Tesla Model S he recently bought, nor stop using Starlink's satellite service at the White House. For now, all eyes are on Tesla's robotaxi event scheduled for next week. On TipRanks, TSLA stock has a Hold consensus rating based on 14 Buys, 12 Holds, and nine Sell ratings. Also, the average Tesla price target of $285.97 implies 12.4% downside potential from current levels. See more TSLA analyst ratings

Is Tesla's Pain Rivian's Gain?
Is Tesla's Pain Rivian's Gain?

Globe and Mail

time2 hours ago

  • Globe and Mail

Is Tesla's Pain Rivian's Gain?

Tesla (NASDAQ: TSLA) has been on a tough path the last few years. It keeps losing share in its key markets around the globe, especially in the United States, a trend that looks set to continue even though it has slashed prices on its best-selling electric vehicles (EVs). Now, CEO Elon Musk has started publicly debating with President Donald Trump, and it is unclear whether this feud will truly affect Tesla's business. But it will definitely not be a positive development since taking political sides will inevitably alieniate a large customer cohort. It's a sceario that can cut both ways. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Regardless, the company has already experienced much financial pain the last few years. At the same time, other EV stocks, such as Rivian Automotive (NASDAQ: RIVN), have stayed stuck in the mud. Its shares are down over 90% from all-time highs and trade below $15. Is Tesla's pain going to be Rivian's gain, making the stock a buy right now? Rivian's bold bets are falling flat Rivian made its debut on the stock market with a lot of excitement. It raised over $10 billion in its initial public offering and shot up to a market cap of over $100 billion. Investors were optimistic about the company -- which at the time generated zero revenue -- and its EV product pipeline and its deal with Amazon to build its new delivery vans. Since then, Rivian has started to produce cars for customers, but at a much smaller scale than initially thought. It still has a large 100,000 order to make electric vans for Amazon, and you can now see its vehicles regularly on roads in the United States. However, with the high price points of its trucks and SUVs, deliveries to customers have begun to flatten out. In 2025, the company is guiding for 40,000 to 46,000 deliveries. In 2024, it delivered over 50,000 vehicles. For reference, Tesla delivers close to 2 million cars globally each year, and while that figure has begun to fall, it is still significantly larger than Rivian's numbers. Selling cars that push a $100,000 price point is going to make your product unaffordable for most people in the U.S. This is why Rivian's share of EV sales has not grown significantly in reaction to Tesla's market share losses. Musk's customers have gone to legacy brands that can sell more affordable EVs. Can Rivian's sales grow again? To reinvigorate delivery growth, Rivian plans to bring a more affordable EV to market in 2026 called the R2. The SUV will cost around $45,000 before upgrades, which will open up a much larger addressable market. The company still needs to execute and start up production, but this is the right path if it wants to achieve greater market share in EVs and get to profitability. Scale will be important. Right now, the company is losing a ton of money -- it had a $655 million operating loss just in the first quarter of 2025 -- because it does not have the sales to support its fixed manufacturing costs. Automakers either have to be a niche luxury player selling at high price points or an automaker with large volumes -- nothing in between. The R2 could give Rivian a path to get to hundreds of thousands of vehicle deliveries a year, a capacity the company is in the process of building. It will be an expensive investment, but one it has the cash and liquidity to make. The company had $8.5 billion in cash on its balance sheet at the end of its last quarter, a $3.5 billion commitment from its partner Volkswagen, and a potential $6.6 billion loan from the Department of Energy coming down the line. This provides a long runway to keep burning money as it scales up its manufacturing. Eventually, it will need to generate a profit and positive cash flow, though. RIVN Revenue (TTM) data by YCharts; TTM = trailing 12 months. The right way to look at Rivian stock Investors should not look at Rivian as a quick way to play the Tesla market share losses and Elon Musk's political ventures. The trends in the automotive sector and EVs take much longer to play out, with Rivian planning for a huge growth in production in 2026 and the few years thereafter. Nothing is going to happen in 2025 in regard to growth. The way to look at Rivian stock as an investment, at least for those thinking of buying today, is as a high-risk stock with a lot of long-term potential if the company executes on its growth plans. Today, the stock has a market cap of just $16.5 billion, which is significantly lower than Tesla. Annual revenue for Rivian is right around $5 billion. It will not happen overnight, but Rivian could potentially see its stock price soar if it gets profitable, scales up production, and starts generating tens of billions in revenue a year at some point this decade. But it doesn't come without risks, which investors need to understand before buying this upstart EV manufacturer. Should you invest $1,000 in Rivian Automotive right now? Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor 's total average return is998% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.

Tesla Stock: Why These 2 Downgrades Are Actually a Buy Signal
Tesla Stock: Why These 2 Downgrades Are Actually a Buy Signal

Globe and Mail

time12 hours ago

  • Globe and Mail

Tesla Stock: Why These 2 Downgrades Are Actually a Buy Signal

[content-module:CompanyOverview|NASDAQ:TSLA] When a stock climbs 14% in just two trading sessions despite getting hit with not one but two analyst downgrades, the market is sending a clear message. Tesla Inc (NASDAQ: TSLA) has done exactly that this week, shrugging off downgrades from both Baird and Argus Research as if they were minor speed bumps on a highway. For growth-focused investors, this apparent disconnect between Wall Street caution and actual market action represents something we love to see and write about: a buying opportunity. The Downgrades That Missed the Mark Monday brought a double dose of analyst pessimism when Baird cut Tesla from Buy to Hold, followed by Argus Research, who made the same move. Both firms cited the same primary concern: the very recent and very public spat between Elon Musk and President Trump, which they believe introduces significant uncertainty to Tesla's prospects. Baird's team also expressed particular skepticism about management's optimistic robotaxi timeline and suggested that positive expectations around the upcoming affordable vehicle launch, which we highlighted last week, might already be baked into the current share price. Meanwhile, Argus focused heavily on how the Musk-Trump dispute could weaken demand, especially as EV tax credits face potential expiration. They warned that Tesla's stock now appears driven more by non-fundamental events than actual business performance. Market Defiance Tells the Real Story But here's what makes Tesla so compelling as a stock to own: Tesla shares have actually gained 14% this week already, suggesting investors are treating the analyst caution as temporary noise rather than a very red warning sign. The stock's ability to climb despite fresh negative coverage indicates that the market sees through the political theater the underlying business momentum and long-term potential. After all, Tesla had posted what analysts called a fundamentally poor quarter in April, yet shares had already begun recovering before the Trump-Musk tensions erupted. That recovery trajectory appears to be reasserting itself regardless of Wall Street's newfound caution. The Bullish Chorus Remains Intact [content-module:Forecast|NASDAQ:TSLA] While Baird and Argus stepped to the sidelines, the broader analyst community tells a different story and is worth noting. The team at Piper Sandler actually reiterated their Overweight rating on Tuesday, echoing the updates from Morgan Stanley and Wedbush this month, already in maintaining bullish stances. Wedbush has been particularly aggressive, slapping a $500 price target on the stock and standing firm despite the recent volatility. This split in analyst opinion actually strengthens the contrarian case. When selective downgrades occur against a backdrop of maintained Buy ratings from other respected firms, it often signals that the negative factors are temporary rather than structural. Case in point: the fact that these downgrades focus primarily on political uncertainty rather than fundamental business deterioration supports this view. Perfect Storm for Patient Capital Tesla's current situation creates an almost textbook setup for contrarian investors. The stock has already absorbed a 25% hit from political noise, endured two high-profile downgrades, and still managed to surge 14% in just two sessions. This combination suggests that temporary headwinds are actually creating opportunity rather than risk. Consider this: if Tesla can gain 14% while dealing with two rare analyst downgrades and political uncertainty, imagine the potential upside once these temporary factors fade. The upcoming affordable vehicle launch and robotaxi development remain on track regardless of Washington drama, and Tesla's core EV market position continues to strengthen globally. For investors who believe in Tesla's long-term transformation story, the current moment offers something increasingly scarce: the chance to buy into a high-growth stock at a potential discount. The Window Is Already Narrowing All that being said, the market's quick dismissal of Monday's downgrades suggests this buying opportunity may be short-lived. Political tensions have a way of resolving themselves, especially when business interests are at stake. Meanwhile, Tesla's product roadmap and market expansion continue regardless of Twitter feuds or analyst hand-wringing. For investors willing to look past the headline noise, these rare downgrades may prove to be perfectly timed entry points rather than warning signals. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store