One of the leading online transportation companies in the United States is Uber and it was established in 2009 by Travis Kalanick and Garrett Camp. With its headquarters in San Francisco in California, the company operates its ride-hailing service in many parts of the world.
It uses mobile application software to manage and operate its ridesharing service. The riders can request for a ride using the mobile app that directs them to the nearest available cab and makes payments using the same app. The ridesharing giant has been a pioneer in the sharing economy that has modified the industries of the sharing economy and is referred to as Uberisation or Uberification.
Self-driving cars are on the way and your chances of experiencing the self-driving car fleet are increasing nowadays. Recently, Uber announced its partnership with Daimler, the manufacturer of Mercedes-Benz. The partnership was made to bring the German automaker’s autonomous vehicles on Uber’s ride-hailing network in the future. This is the first time the major automaker will provide its own self-driving vehicles entirely in-house and without the help of the Uber, clearly to operate on the ride-hailing company’s network. This partnership was made on January 31, 2016. Rumors of this partnership started to spread in early 2016. These rumors started spreading when a German magazine tabloid stated that Uber placed an order of 100,000 Mercedes S-class series with the Benz manufacturer Daimler.
Pittsburgh was the first place for the Uber to launch its self-driving program. In Pittsburgh, Uber used Ford focus vehicles and then it started using Volvo SUVs. Uber launched its self-driving Volvo SUVs in San Francisco in August 2016. But within a week after launch, California department of Motor Vehicles forced Uber to close its operations, arguing that Uber didn’t have required permits for the self-driving experiment. After that Uber didn’t release self-driving vehicles in the other cities also. But the ride-hailing company plans to launch its program in Phoenix.
Uber and Daimler partnership
Uber’s partnership with Daimler is not that much exclusive, which means that Daimler has the capacity to manufacture self-driving vehicles for the Uber’s competitors such as Lyft and much more. Uber is also capable of bringing the selfless driving car manufacturers onto its platform. This newly formed partnership is an amazing strategic move for the entire Uber’s transportation network. But the company has no experience in vehicle production.
The two businesses are still arranging some rules and negotiations on the terms of their partnership. Both the companies publicized the financial details of their agreement. So the financial arrangement is not yet set by both the companies. Uber passengers should expect to experience a ride from the self-driving Mercedes-Benz Sedan because this is one of the major aspects of this partnership. Thus this partnership will create a difference and it will replace the man in a corolla with a Benz robo car, this will really be the remarkable change.
According to the arrangement, the Benz manufacturer Daimler will not interfere with any Uber’s self-driving hardware or software, but Uber will use the Daimler’s self-driving vehicles as a new way of transportation for its riders. Similarly, Daimler will hit the technology, which Uber uses to connect the riders to cars. This will create an entirely new experience for Uber riders.
Both the companies will be benefited from this partnership. In the case of Uber, there are two benefits associated they are:
- cooperating with the car manufacturers will reduce the view that Uber is a risk to the sales of the auto industry;
- Uber’s ride-hailing network can increase its supply of vehicles to pick up its growing base of riders.
On the other hand, Daimler will benefit from Uber’s customer base and it will save itself from the nuisance of building the dispatch and routing system is needed to connect the people with the cars and take them to their destination. So it’s a Win-Win condition for both the companies.
Lyft, Uber’s biggest competitor is also working with the automobile manufacturer. In January 2016, General Motors also invested $500 million in Lyft and it also bought the self-driving vehicle startup Cruise. John Zimmer, the co-founder, and president of Lyft announced that Lyft will provide self-driving rides to the customers by the end of 2021.
Other competitors of Uber are also investing and experimenting with the self-driving vehicles. For example, Alphabet Inc named its autonomous car program Waymo in December last year. The alphabet is in the process of selling hardware to the car manufacturers and it has a struck to deal with the Fiat Chrysler to provide its vehicles with a full self-driving kit.
So, what will be the addition of autonomous vehicles mean for the entire automobile regulations? The seven states and the District of Columbia have passed a legislation supporting the testing of the self-driving vehicles. In 2016, Florida eliminated the need for the vehicle operation to be done for the testing purposes and the driver should be present in the vehicle. In the coming years, more states are likely to adopt a similar legislation regarding the autonomous vehicles. Uber and Daimler partnership will be beneficial than expected.
Germany’s auto manufacturing giant
Basically, Daimler is a multinational automotive corporation; it is headquartered in Stuttgart, Baden-Württemberg, Germany. As of 2014, Daimler has shares and it owns a number of cars, truck, bus and the motorcycle brands like Mercedes Benz, Mercedes AMG, Detroit Diesel, Smart Automobile, western Star, Freightliner, Setra, Thomas Built buses and much more. In addition to the automobiles, the manufacturing giant manufacturers buses and provides financial services through its Daimler Financial services arm. Daimler is the component of the Euro Stoxx 50 stock market index.
This vehicle manufacturing giant is one of the largest producers of the premium cars and it is one of the largest globally manufactures of the commercial vehicles. Daimler Financial services offer financing, fleet management, leasing, investments, insurance services, innovative mobility services, and credit cards.
The founders of the company are Gottlieb Daimler and Carl Benz. These founders wrote the history with the invention of automobiles in 1886. Daimler continues to shape the future of mobility even today.
The company applies innovative and green technologies to produce the superior and safe vehicles, which will impress its customers. The company continually invests in the development of alternative powertrains, it starts from the hybrid vehicles to all-electric vehicles with batteries or the fuel cell, the goal of the company is to make the emission-free driving possible in the long-term. Even more, the company maintains a consistent path towards the accident-free driving and intelligent connectivity on the path of the autonomous driving. Daimler accepts the challenge of meeting the responsibility towards the society and also the environment.
Daimler sells its services and also its vehicles in all the countries across the world. The company has its production facilities in Europe, North and South America, Africa, and Asia. In addition to the Mercedes-Benz, the world’s most powerful and valuable brand, plus Mercedes-AMG, Mercedes me and Mercedes Maybach. The portfolio of the Daimler includes smart, Western Star, FUSO, Setra and much more. Daimler is one of the reasons for the success of Mercedes-Benz and its classic model. Daimler’s partnership with Uber will definitely be a successful one and will result in Win-Win for both the companies.