
Uber to launch driverless taxis in London next year
For more financial news, go to the News24 Business front page.
Ride-hailing firm Uber will launch self-driving taxis in London next year when England trials new driverless services, the firm and the UK government said on Tuesday.
Under the Uber pilot scheme, services will initially have a human in the driver's seat who can take control of the vehicle in an emergency, but the trials will eventually transition to being fully driverless.
The government announcement will see companies including Uber allowed to trial commercial driverless services without a human presence for the first time in the UK.
They will include taxis and "bus-like" services.
Uber CEO Andrew Macdonald described London's roads as "one of the world's busiest and most complex urban environments".
"Our vision is to make autonomy a safe and reliable option for riders everywhere, and this trial in London brings that future closer to reality," he said.
Members of the public will be able to book the transport via an app from spring 2026, ahead of a potential wider rollout when new legislation -- the Automated Vehicles Act -- becomes law from the second half of 2027, the Department for Transport added.
The technology could create 38 000 jobs, add £42 billion ($57 billion) to the UK economy by 2025, and make roads safer, it said.
"The future of transport is arriving. Self-driving cars could bring jobs, investment, and the opportunity for the UK to be among the world-leaders in new technology," Transport Secretary Heidi Alexander said.
"We can't afford to take a back seat on AI…. That's why we're bringing timelines forward today," added Technology Secretary Peter Kyle.
The wider rollout will also allow the sale and use of self-driving, private cars.
Driverless vehicle trials have been under way in the UK since January 2015, with British companies Wayve and Oxa "spearheading significant breakthroughs in the technology", the ministry said.
"These early pilots will help build public trust and unlock new jobs, services, and markets," said Wayve CEO Alex Kendall.
According to the government, the forthcoming legislation will require self-driving vehicles to "achieve a level of safety at least as high as competent and careful human drivers".
"By having faster reaction times than humans, and by being trained on large numbers of driving scenarios, including learning from real-world incidents, self-driving vehicles can help reduce deaths and injuries," it said.
Driverless taxis with limited capacity are already on the roads in the United States and China, most notably in the central Chinese city of Wuhan, where a fleet of over 500 can be hailed by app in designated areas.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


New York Times
22 minutes ago
- New York Times
New China Trade ‘Deal' Takes U.S. Back to Where It Started
After two days of tense negotiations, the United States and China appear to have walked back from the brink of a devastating economic conflict — maybe. Officials from the two countries reached a handshake agreement in the early hours of Wednesday in London to remove some of the harmful measures they had used to target each others' economies as part of a clash that rapidly intensified in recent months. It remains unclear whether the truce will hold — or crumble like one struck in May did. Even if the agreement does prove durable, its big accomplishment appears to be merely returning the countries to a status quo from several months ago, before Mr. Trump provoked tensions with China in early April by ramping up tariffs on goods it produces. 'It seems like we're negotiating in circles,' said Myron Brilliant, a senior counselor at DGA-Albright Stonebridge Group and former executive vice president of the U.S. Chamber of Commerce. 'You escalate, you de-escalate,' he added. 'At the end of the day we're not really further along.' As a result of this week's negotiations, tariffs will stay where they are. Further details are scant, other than the likely rollback of aggressive policies the two countries adopted since May. China is expected to loosen restrictions on exports of minerals that had threatened to cripple an array of American manufacturers. The United States will in return relax new limits that it placed on its own exports of technology and products, as well as walk back threats to cancel visas for Chinese students in the United States. Want all of The Times? Subscribe.


Bloomberg
32 minutes ago
- Bloomberg
Bloomberg Businessweek Daily: Trump Touts China Deal
Watch Bloomberg Businessweek Daily LIVE every day on YouTube: President Donald Trump said a trade framework with China has been completed, with Beijing supplying rare earths and magnets 'UP FRONT' and the US allowing Chinese students into its colleges and universities. The US and China will maintain tariffs at their current, lower levels following the two nations' agreement this week in London, Trump said Wednesday. That number is still higher than before the president took office. Trump said Chinese President Xi Jinping and he must still formally sign off on the agreement. 'OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME,' Trump posted on social media. 'WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!' Yet after months of tense back-and-forth between Washington and Beijing, it remained unclear if the latest round of negotiations brought the two sides closer to an ultimate understanding on trade — or if it just amounted to more talk. 'Trump is mentioning the current tariff status, in a misleading way, to show he has the upper hand,' said Neo Wang, lead China macro analyst at Evercore ISI. Trump's comments prompted fresh questions about the terms of the pact US and Chinese negotiators reached Tuesday. Markets had a mixed reaction on Wednesday to comments from Trump and his team, with US equity indexes fluctuating throughout the day. Today's show features: Bloomberg Economic Chief Geoeconomics Analyst Jennifer Welch on progress in in US-China trade negotiations Alex Grassino, Global Chief Economist for Manulife Investment Management on investment options in the current economic environment Julia Coronado, Founder and President of MacroPolicy Perspectives on the US economic outlook, and expectations for US monetary policy Bloomberg Businessweek Editor Brad Stone on the LA riots and his feature story on the United States losing its moral authority across the globe
Yahoo
43 minutes ago
- Yahoo
Why Qualcomm's (QCOM) Long-Term Prospects Shine, Even if the Stock Doesn't
Qualcomm (QCOM) has underperformed over the past year, declining 26%, primarily due to macroeconomic factors rather than internal company mechanics. Although the company's fundamentals remain very solid, it has faced some headwinds, such as concerns that its business is too concentrated on Apple (AAPL) for modem revenue, despite its broader operations still being more rooted in the Android ecosystem. 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 Still, that doesn't stop me from seeing the stock as a long-term Buy—especially since my bullishness comes from Qualcomm's key competitive advantage: its ability to build the Snapdragon platform, which integrates a modem, CPU, and even a GPU chip—something no other competitor can currently match. This positions the company to tap into new business opportunities that could help offset its current customer concentration. Beyond that, Qualcomm's asset-light model allows it to generate very high returns on its investments, highlighting its operational efficiency, strong financial health, and consistent value creation for shareholders. This helps justify the company trading at a slightly stretched valuation when considering its operational profits relative to enterprise value. When looking for value stocks, one of the most important factors—if not the most important—is a company's ability to generate consistent earnings. Examining QCOM's balance sheet reveals a capital-light, high-margin model driven by intellectual property (IP) and characterized by heavy investment in research and development (R&D). As a fabless semiconductor company, Qualcomm relies on external manufacturing partners such as TSMC (TSM) and Samsung (SSNLF) for chip production. Notably, only approximately 7% of its $55.3 billion in total assets is allocated to property, plant, and equipment (PP&E), which is relatively low compared to the industry average. This underscores the efficiency of its asset-light business model and the minimal physical infrastructure required to support its operations. Roughly 18% of its assets are classified as goodwill, indicating a strong track record of acquisitions, which is clearly part of its strategy to acquire intellectual property (IP) or talent rather than build everything in-house. One recent example is the $2.4 billion acquisition of the UK-based semiconductor firm Alphawave. Additionally, approximately 12% of Qualcomm's total assets are tied to IP licensing and chip design. That makes sense, given its dominant position in the Android smartphone chip market, especially in the high-end segment with its Snapdragon lineup. Given that around 37% of Qualcomm's total assets are intangible, it's worth considering the company's actual operational efficiency once these intangibles are excluded. To gain a clearer picture, it is sensible to examine how Qualcomm allocates its limited tangible capital to generate profits. Over the past twelve months, Qualcomm produced an operating profit of $12.3 billion. During the same period, its net working capital was approximately $2.7 billion, and its invested capital—mainly property, plant, and equipment, and other intangibles—totaled roughly $8.28 billion. Dividing the operating profit by this invested capital plus working capital yields an eye-catching ~112% return on capital (ROC). That kind of number highlights Qualcomm's exceptional operational efficiency, something typically only seen in asset-light, IP-driven tech or software companies. For context, most of these firms operate with a return on capital (ROC) well below 50%. In short, despite a balance sheet loaded with intangibles, Qualcomm proves that it's highly efficient with the real capital it uses. And that translates into three key advantages: sustainable value creation, a durable competitive moat, and stronger financial flexibility. Even a company with a high return on capital isn't necessarily a buy—not if you're overpaying for it. That's why it's vital to assess operating profitability in relation to the company's total valuation, not just traditional P/E or P/B metrics. One way to do this is by comparing operating profit to enterprise value (EV), which reflects what the market is actually paying for the entire business. In Qualcomm's case, we can measure this by dividing its operating profit by its enterprise value (EV). Over the last twelve months, Qualcomm generated $12.3 billion in operating profit, while its current enterprise value stands at $164.6 billion. That results in an earnings yield of 7.5%. To interpret that number correctly, it should be compared to Qualcomm's cost of capital. Using a 10-year treasury yield of 4.5%, a beta of 1.2, and an equity risk premium of 4–5%, the estimated cost of equity falls between 9% and 10%. Since the earnings yield of 7.5% is below this range, Qualcomm doesn't appear particularly cheap at the moment. However, judged against historic performance against the S&P 500 (SPX), QCOM stock has underperformed. That said, this isn't necessarily a red flag. Even if the stock looks a bit expensive on this metric, Qualcomm continues to create value through its exceptional return on capital and strong cash generation. This is reflected in its sustainable 2.28% dividend yield and $16.5 billion in share buybacks over the past four years. Given Qualcomm's maturity, profitability, and operational efficiency, a lower earnings yield may be viewed as acceptable, reflecting a premium for quality and stability. Analyst sentiment on Qualcomm stock is somewhat mixed. Out of 17 experts who've issued ratings in the past three months, eight are bullish, eight are neutral, and just one is bearish. Still, there's little hesitation when it comes to upside expectations. Qualcomm's average stock price target is at $177.75, suggesting ~14% in potential upside over the next twelve months. While traditional valuation metrics may indicate that Qualcomm is undervalued, I believe that perspective overlooks the company's strong operational efficiency. Qualcomm doesn't need to appear 'cheap' to represent a compelling investment opportunity. Its robust, above-average returns on capital, driven by an asset-light business model, demonstrate its ability to create substantial shareholder value and may, in fact, justify a valuation premium. Viewed through this fundamental lens, and given Qualcomm's consistent track record of long-term value creation, I consider it a solid long-term investment, even at its current, relatively full valuation. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data