Robotaxis disrupt ride-sharing with a reverse flywheel effect

skorusARK · x · 2026-09-02

Analysis suggests robotaxis pose a greater threat to Uber/Lyft than appreciated due to a reverse flywheel effect. AVs will skim the densest, highest-utilization trips, causing driver hourly earnings to break and supply to exit. As Uber raises prices and AVs lower them, the flywheel that built Uber runs effectively in reverse. Only about 500 cars are needed to make human-driven services materially worse.

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