Uber shifts to asset-heavy strategy with $10 billion investment

Uber is shifting from its traditional asset-light business model—which requires minimal capital investment in physical infrastructure—to an asset-heavy approach focused on owning or leasing physical assets. According to the Financial Times, the company has committed more than $10 billion to buying autonomous vehicles and taking equity stakes in developers. This total includes about $2.5 billion in direct investments, with the remaining $7.5 billion allocated to purchasing robotaxis over the next few years.

This strategy marks a departure from Uber’s previous “moonshot” era between 2015 and 2018. During that period, the company pursued development through its autonomous vehicle unit Uber ATG—boosted by the acquisition of Otto in 2016—and electric air taxi developer Uber Elevate, alongside acquiring micromobility startup Jump in 2018. Uber divested these units in 2020, selling them to Aurora, Joby Aviation, and Lime, respectively, while retaining equity stakes. Now, instead of developing technology in-house, Uber is focusing on fleet ownership. Meanwhile, in Silicon Valley, venture firm Eclipse recently raised a $1.3 billion fund. Eclipse partner Jiten Behl stated, “We’re definitely working on a couple of really cool ideas,” and a seed round announcement is imminent for a San Francisco-based startup working on an autonomous hauler.

Other notable transactions and developments in the mobility sector include:

• Slate: The electric vehicle startup raised $650 million in a Series C round—a late-stage venture funding round—led by TWG Global, run by Los Angeles Dodgers owner Mark Walter. This brings Slate’s total raised to date to about $1.4 billion, with production planned by the end of 2026.
• Glydways: The autonomous pod startup raised $170 million in a Series C round to develop personal pods operating on dedicated 2-meter-wide lanes.
• Loop: The San Francisco-based startup raised $95 million in a Series C round.
• Caterpillar and Monarch Tractor: Caterpillar acquired the assets of Monarch Tractor, an electric autonomous tractor startup.
• Delivery Hero: Uber is increasing its stake in Delivery Hero by 4.5%, agreeing to buy about 270 million euros in shares from Prosus.
• Rivian and Redwood Materials: The partners are installing battery storage at Rivian’s factory in Illinois, utilizing 100 second-life battery packs to provide 10 megawatt-hours of dispatchable energy.
• Lightship: The electric RV startup is expanding its Colorado-based factory by 44,000 square feet.
• Waymo: The company is testing autonomous vehicles in London and has removed its waitlist to scale services in Miami and Orlando.

In the regulatory and corporate sphere, the New York Times reported that GM and Ford are reportedly talking to the Pentagon about revamping its procurement program. Additionally, Tesla created a new self-driving app, and Foxglove’s founder was recently interviewed on the Autonocast podcast.

Why it matters

Uber is shifting its strategy from an asset-light model to an asset-heavy approach, committing over $10 billion to autonomous vehicle technology and fleet ownership.