Right now there is a lot of hype about the taxi service Uber, especially regarding how convenient they are compared to the traditional taxi companies. However, I often wonder how Uber prepares to deal with the imminent threat of driverless cars.

Google has already created and produced driverless cars. The only real barrier at this time seems to be government regulation, which interestingly is the same barrier that Uber faces.

Once driverless cars are allowed, what is stopping people from choosing a driverless car over the more dangerous alternative of an anonymous driver?

I predict that driverless cars are on their way and will devastate Uber’s business model. I think that the high valuations regarding Uber are overstated. Uber faces a short-term advantage when compared to the traditional, complacent taxi companies. But, a long-term disadvantage compared to driverless cars.  In order to effectively compete, Uber would have to seriously consider how to incorporate driverless cars into their business model.