The Uberization of Transit

A few weeks ago, Uber’s Travis Kalanick predicted that it would soon replace its drivers with self-driving cars. Now, he’s putting his investors’ money where his mouth is by poaching 40 self-driving auto engineers from Carnegie-Mellon University.

“Uber offered some scientists bonuses of hundreds of thousands of dollars and a doubling of salaries to staff the company’s new tech center in Pittsburgh, according to one researcher at NREC.” Although Google has gotten most of the headlines lately, it was Carnegie-Mellon’s entry that won the $2 million DARPA urban challenge in 2007. Unfortunately, its biggest sponsor, General Motors, went bankrupt soon after that, and it probably hoped that a partnership with Uber would help. Instead, the partnership just allowed Uber to decide which of its engineers it would steal.

Meanwhile, Denver graduate student August Ruhnka has suggested that public bus systems be “uberized.” It was a unfortunate choice of terms as he didn’t mean allowing people to call buses to their homes using a smart-phone app. Instead, he proposed to let private companies operate Denver buses (he didn’t seem to be aware that they already operate half of them) and, more significantly, to let those private companies change routes in order to better serve riders. “Private-route contracts establish a sustainable procedure to constantly test the market to achieve the lowest cost,” he wrote.

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