The Most Efficient Path to Market for Tesla and AV Developers: Partnering with Uber and Lyft
Jefferies analysts have uncovered a game-changing strategy for Tesla and other autonomous vehicle (AV) developers - partnering with established ridesharing giants like Uber and Lyft. In their latest note, Jefferies highlights the key reasons behind this strategic move.
According to Jefferies' survey and analysis, there is a strong consumer demand for robotaxis, especially at a discounted price. In fact, 73% of U.S. rideshare users would consider using a robotaxi, making price a major deciding factor.
But the real magic happens when AV developers team up with rideshare companies. Jefferies estimates that a robotaxi fleet partnering with Uber and Lyft could enjoy a 22% higher gross profit per ride compared to a standalone fleet. This is because rideshare companies already have the logistics and pricing expertise in place, and can leverage their high-utilization fleets for maximum efficiency.
Insurance costs also play a crucial role in this partnership. Jefferies predicts that insurance will be the biggest expense for robotaxi fleets, and standalone fleets with lower utilization rates would face even higher insurance costs per ride.
For Tesla and GM, Jefferies strongly recommends a partnership with rideshare providers as the most logical approach. Tesla's upcoming event on August 8th is expected to unveil its robotaxi strategy, and Jefferies believes that combining its low-cost Tesla Network concept with rideshare services could create an unbeatable combination for additional capacity.
In conclusion, by teaming up with Uber and Lyft, AV developers like Tesla can not only tap into a massive consumer demand for robotaxis but also benefit from the established expertise and resources of rideshare companies. This strategic partnership could pave the way for a profitable and efficient future in the world of autonomous vehicles.