Deciding When Uber Should Replace Human Drivers With Autonomous Vehicles

Suppose you are a product manager at Uber and need to work out whether the company should move from rides given by human drivers to rides given by self-driving cars. Explain how you would make that decision: the options you would consider, the criteria and evidence that would drive it, and the recommendation you would reach. ```hint Question the word "switch" Ask whether the answer has to be the same in every city and for every trip, and who would own and run the cars. Then decide what evidence would settle each piece. ``` ### Clarifying Questions - Does "switch" mean fully replacing human drivers, or adding self-driving cars alongside them, and over what time horizon? - Would Uber develop and own an autonomous fleet itself, or offer rides in cars that autonomous-vehicle companies build and operate? - Is the decision about ride-hailing in specific cities or a company-wide strategy, and should delivery be considered too? - Which goal matters most to leadership: profit per trip, growth, or protecting Uber's position if autonomous-vehicle companies offer rides through their own apps? ### What a Strong Answer Covers - Framing the decision around Uber's goals as a two-sided marketplace, including the cost of not acting as autonomy matures. - A set of strategic options, from staying with human drivers only to owning a fleet, with their trade-offs for an asset-light business. - Decision criteria backed by evidence: safety, unit economics and utilization, rider demand and experience, regulation, and the effect on drivers. - A staged plan with explicit go/no-go gates, success metrics with guardrails, and the main risks. ### Follow-up Questions - An autonomous-vehicle partner will put its cars on Uber only if Uber guarantees a minimum number of paid trips per car each day. How would you evaluate the offer? - In a city where self-driving cars already serve a large share of trips, how would you keep enough human drivers for peaks and for areas the cars cannot serve? - What evidence would make you pause or reverse autonomous rides in a city after launch?