Google vs Uber: The Critics’ View

Google is reportedly developing its own version of a taxi-hailing service which could rival Uber, and eventually be part of its self-driving car project. The news was originally reported by Bloomberg, which cited an inside source at Uber itself.

TechWeekEurope has rounded up some of the best tech writers on the web who have given their thoughts on the news:

Andrea Peterson, The Washington Post

“Racing to win the future of transportation, two companies appear to be heading for a pretty big crash: Google and Uber.

“Both firms appear to be crossing into each other’s territory. Uber on Monday announced a partnership with Carnegie Mellon that could enable it to get into driverless cars — a major project in development at Google. And Bloomberg reported that Google is preparing its own ride-hailing service. Both bits of news raised eyebrows in Silicon Valley because Google is a big investor in Uber and one of its top executives sits on the ride-sharing company’s board of directors.

“But if the two tech companies are going to go at it in this space, it won’t exactly be a fair fight. Uber depends on Google’s tech now, using Google Maps to help drivers navigate. And Uber’s business model is much more easily replicated — as evidenced by the hoard of competitors including Lyft and SideCar who run essentially the same business.

“But Google’s research into the development of self-driving cars has the potential to upend Uber and its peers just as they upturned the taxi industry.”

Seth Porges, Forbes

“Some Internet services—particularly those involved with connection and communication—are very difficult to exorcise from our lives, even if something better comes along. The service may have your photos, your messages, your contacts, your virtual dollars, your imaginary game points. There are sunk costs and time and inertia that keep you using these things, even in the face of new and flashy competition. It’ll take far more than a few new features to produce an Instagram-killer, and try as many people do to step away from Facebook, the service has successfully baked itself into many of our lives.

“But Uber is different. Even if strangers pick you up, Uber is not social. Uber is a middleman. Uber is a market for independent drivers (a contentious status that has caused no shortage of controversy regarding the company’s labor practices and what makes an employee an “employee”)—many of whom also drive for competitors such as Lyft. Uber doesn’t have your precious media files or messages backed up or offer you any real way of communicating with anybody other than the driver who is on his way to pick you up. Uber’s success is entirely replicable.”

Brand Stone, Bloomberg

“Google’s entrance into the ride-sharing market would also leave Uber without a partner in the suddenly plausible future in which cars without steering wheels roam the streets. Uber will either have to develop the technology itself or form an alliance with a company that can if it wants to offer autonomous vehicles within its fleet. Mercedes, Audi, Tesla, and other carmakers have said they are developing driverless cars, though it’s not clear that any is as advanced as Google’s.”

Chris Ziegler, The Verge

“In 2007, an Eric Schmidt-led Google made a bizarre announcement: it said it would bid on a swath of extraordinarily valuable wireless spectrum, but only if the FCC committed to a set of rules that would require that any compatible device be able to connect to it without restriction. The move was particularly perplexing because it seemed like Google was undercutting the wireless operators it was trying to partner with in advance of its Android launch. Why would it throw billions at a bid to steal spectrum out from underneath the very companies it was trying to work with?

“Early the following year, we had the answer: Google had a policy agenda. It didn’t win any spectrum — most of it went to Verizon — but by placing bids, it accomplished what it had set out to do, meeting the minimum bid necessary to trigger the Commission’s open device rules. It didn’t want spectrum; it never did. It wanted to make the market more favorable for launching Android devices.

“Fast forward to 2015, and self-driving cars are meeting many of the same headwinds that next-generation wireless networks were meeting in the mid-aughts. Necessary rules and standards don’t exist. There’s still research to do. Pillars of the private and public sectors are jockeying to lead the conversation, to plot the path to commercialization.

“This week, Uber has announced a self-driving research initiative in partnership with Carnegie Mellon, while Google is rumored to be investigating ride-sharing using its own self-driving cars. At a glance, as many have speculated, it would appear the two are about to go to war — but cast in the light of Google’s wireless maneuvers nearly a decade ago, the story looks very different.

“As in 2007, Google’s priorities for self-driving cars remain in research and policymaking.”

Dan Lyons, Valleywag

“Remember how Eric Schmidt spent years sitting on the Apple board, quietly learning everything about the iPhone — and then, presto, Google suddenly came out with Android and it looked a whole lot like the iPhone operating system and Steve Jobs went nuts on Schmidt for being such a sneaky, backstabbing son of a bitch?

“Well, Google just snuck up on another victim. This time it’s Uber.

“BusinessWeek reports that “Google is preparing to offer its own ride-hailing service.” Google’s service will involve self-driving cars. In theory that could make the service cheaper and better than Uber. There would also be less chance of getting assaulted by a driver. On the other hand, in the Google car you will probably be bombarded with ads.

“You didn’t think Google was just making those crazy little robot cars just for fun, did you? Widespread rollout might be a few years away, but Googlers are already using the service, supposedly. And Uber has seen screenshots of the app.”

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