Tesla Planning Rideshare Service Featuring Autonomous Vehicle Network

May 8, 2018         By: Steven Anderson

Somewhere, Uber and Lyft’s CEOs are likely having a very unpleasant day. It’s mostly focused around the anxiety-induced ulcer that suddenly developed in the pits of their stomachs recently thanks to a new announcement from Tesla. For 2019, Tesla is actually planning to enter the ridesharing arena thanks to its network of autonomous vehicles.

Billed by CEO Elon Musk as a kind of weird synthesis of Lyft, Uber, and Airbnb—users get to technically own the car and enjoy full usage of the car during the time frame in question, but set up a program where it’s available to other people to use it—the system was described during Tesla’s recent first quarter earnings call.

There are some kinks in the program that require addressing first; most notable of these is the fact that the “autonomous” part still needs shoring up. Additionally, Tesla also needs to put software in place that allows the ridesharing network to run in the first place.

The idea that Tesla could get such a platform up and running, at least eventually, isn’t so outlandish; analyst Gene Munster figures there’s a better than even chance the fleet could be launched by 2023. Munster also figures such a move would generate between $2 billion and $6 billion in revenue.

It might not be such a bad move, particularly if Tesla can find people willing to share out their cars. If Tesla were to offer discounts on the cars, with the condition that the buyer would have to share the car, that might be the perfect way to do it. There are probably plenty of people out there who would have bought a Tesla if the price was better, and if becoming a part of the ridesharing network is part of the cost of ownership, some of those may well go in. Others may be less eager to share out their dream car, but those who are might be enough.

It’s a little outlandish to think that Tesla can get this program up and running in six to 18 months; we’re talking about a ground-up affair from a company whose stock is so volatile it’s best transported in padded briefcases. Still, anything’s possible, and Uber and Lyft may have serious competition soon.