Tesla Will Launch Uber-Style Ride Service

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Photo Credit: Tesla Motors

Tesla has stated on their website that they have big plans to launch an Uber-style ride service program, announcing details next year.

Fully Autonomous Tesla Cars

Elon Musk, product architect for Tesla, said that they have ambitions to build self-driving functionality on new Model S vehicles, although at present the technology is not advanced enough.

Musk previously outlined a “Master Plan, Part Deux” where a Tesla owner could add a car to a shared Tesla fleet using a phone app, which would “generate income for you.”

A disclaimer read: “Please note that using a self-driving Tesla for car sharing and ride hailing for friends and family is fine, but doing so for revenue purposes will only be permissible on the Tesla Network, details of which will be released next year.”

Ride-Hailing Apps: A Booming Industry

Uber is estimated to be worth $66 billion, having expanded in the last decade.

This year, Didi Chuxing bought Uber China to create a new entity worth $35 billion.

In May Apple invested $1 billion into Didi Chuxing, China’s biggest ride-hailing service.

Tesla Faces Challenges

According to Reuters analysis, venture capitalists and corporate investors had put nearly $28 billion into the ride services sector in the past decade as of June.

General Motors has invested $500 million in Lyft in January.

However, the challenges with Tesla’s ride sharing plans are: not having the capital GM has and vying for dominance in a competitive market.

Would you take a ride on a self-driving car? Can Tesla succeed in such a competitive market?