The Innovator Overtaking the Incumbent: A New Era in Mobility

The disruptor becomes the disrupted. The ride-sharing industry, once dominated by giants like Uber and Lyft, is witnessing a seismic shift.

With its relentless focus on autonomous driving technology, Waymo has steadily climbed the ranks. From a modest beginning, it’s now poised to challenge the market leaders. The graph beautifully illustrates this trajectory, showing Waymo’s market share in the SF operating zone growing exponentially while Uber and Lyft experience a gradual decline.

This week Tesla rolled out FSD 13.2. One example showed the car driving from San Diego to Los Angeles (a 2+ hour drive) with zero touches of the steering well.

Tesla’s Cybertaxi with Full Self-Driving (FSD) 13, will revolutionise personal transportation and ride-sharing. Here’s why this could be a game-changer:

Cost Efficiency
By removing the human driver, operational costs plummet. This could lead to lower passenger fares and higher profitability for vehicle owners.

Safety
FSD technology aims to surpass human driving safety standards, potentially reducing accidents caused by human error.

Convenience
Tesla Cybertaxis could offer a seamless experience, from summoning your ride with a phone tap to an autonomous vehicle arriving at your doorstep.

Since the US elections, Tesla’s share price has experienced significant growth, reflecting both market confidence and the potential for the technology. Post-election, Tesla’s stock surged by approximately 92%, adding over $718.75 billion to its market cap, showcasing investor optimism.

As Waymo continues to innovate and Tesla prepares to launch its Cybertaxi service, the dynamics of urban mobility are set to change. This will redefine how we move, interact with technology, and think about transportation as a service.

Conclusion

The graph is a narrative of innovation. The disruptor becomes the disrupted and the rules of the game are re-written. New value created, incumbent value reduced. There is a reason why renowned investor Altimeter Capital sold all their Uber and invested into Tesla.