(Image Credit: iStockPhoto/kasinv)

On the same day Uber announced it had acquired self-driving technology experts Otto, the company is launching a fleet of cars in Pittsburgh to get users from A-to-B without a physical driver.

Volvo is the launch partner for the initiative, with the likelihood being the car manufacturer is using Otto’s technology for its vehicles. Otto, for its part, has always decided to focus on technology for manufacturers to implement within their vehicles rather than face the cost and expertise required to build its own self-driving cars from scratch.

What happens when the driver is no longer needed?

Otto’s team is full of incredible talent. You have Anthony Levandowski, well-known in the self-driving for his work on Google’s self-driving car effort in its early days. Lior Ron, previously head of product at Google Maps. Whilst other engineers in the 91-strong team at Otto worked at Tesla and Apple.

If the reports are correct, it’s a perfect trio of companies. You have the car manufacturing expertise of Volvo, the innovative self-driving technology of Otto, and the large user base of Uber which is a service many people already have installed on their phones.

“By joining forces with Uber we can fast forward to the future. Together, Otto and Uber can build the backbone of the rapidly-approaching self-driving freight system. We can help make transportation as reliable as running water, everywhere for everyone, whether you’re talking people or packages,” Otto wrote in a blog post.

The potential here for Uber is astounding if handled correctly. Uber allows drivers to use their own car to drive people in the area where they need to go, but what happens when the driver is no longer needed? The car still will be, and can work for on behalf of its owner when not in use.

Uber could enable car owners to have compatible vehicles fitted with self-driving technology like Otto’s to earn cash for the company and the car owner. This will likely be expensive and reserved for those with money to spare.

We can help make transportation as reliable as running water, everywhere for everyone, whether you’re talking people or packages

It’s becoming accepted the days of car ownership is numbered; with the rise of self-driving cars removing the need to purchase vehicles when you can get a ride where you need to go in just a tap. In the future, you could even set a location and when you need to get there and the car will monitor traffic conditions to ensure it’s outside in time. 

Speaking of traffic, self-driving cars will help to reduce congestion in two ways. First, the removal of human error should result in fewer accidents. Second, more people will share cars if the cost is reduced and it’s automatic — similar to Uber Pool. Everyone gets around faster, with reduced stress, and less pollution. 

Other companies may follow this model, in particular, Google who has been working on its own self-driving technology and doesn’t want to manufacture its own vehicles. Apple, meanwhile, seems to be focused on building a complete self-driving car. 

Uber has been looking to reduce its dependency on Google — its current mapping provider — and has decided to invest $500m in mapping. The company has mapping vehicles heading across the US and Mexico; with other countries due to begin soon. Ongoing data provided by Uber’s vehicles will even provide it with an advantage in some areas such as knowing those shortcuts only (good) local taxi drivers know. 

More than $13.5bn has been raised from investors including private equity group TPG, Saudi Arabia’s sovereign wealth fund, and China’s Baidu. The most recent investors valued Uber at $62.5bn, which makes it the most highly valued private company in Silicon Valley. 

What advice would you give to Uber on their self-driving car strategy? Let us know in the comments.