Uber has had a long list of adversaries since the launch of its controversial ride-hailing service, including regulators, drivers and rival companies. Google, one of the biggest investors of Uber, could also be joining that list.
According to reports, Uber is planning to develop self-driving cars, a project that Google has highly invested in. Incidentally, Google is planning to develop its own ride-sharing service, which will be competing with Uber for customers.
Google Ventures, the venture capital division of Google, made an investment of $258 million in Uber in August of 2013. The investment was the largest ever made by Google Ventures, with the division investing even more money into Uber in a funding round less than a year after. It was once thought that Google would be teaming up closely with, or perhaps even acquire, Uber in the near future.
However, new developments point to the two companies being competitors rather than allies.
The ride-hailing service that Google is planning will likely be working closely with the company's self-driving car. Google chief legal officer and senior VP of corporate development David Drummond, who has been on the board of Uber since 2013, informed Uber regarding Google's plans, with Uber executives shown screenshots of a ride-sharing app that Google employees are trying out.
Uber, on the other hand, announced that it is working with the Carnegie Mellon University to put up a research facility in Pittsburgh, Pa., for the development of autonomous vehicle technology.
Google CEO Larry Page has not made his secret his fascination with the company's autonomous vehicles project, with the Google X research division of the company stating that the technology is between two to five years from being launched for the use of the general public.
Chris Urmson, the executive for Google in charge with the driverless car project, said in a conference call that Google's driverless car could prove its long-term usefulness by being a shared vehicle, with users calling up the car to pick them up and then telling it where to go.
These comments by Urmson have caused concern among Uber executives, as Google's technological expertise and financial wealth makes it a very difficult rival to compete against. In addition, Uber's app utilizes Google Maps, and it would be a great blow to Uber if Google would pull out access to its mapping service.
In addition, Google's entry into the ride-sharing market will cut off any chance of a partnership with Uber for self-driving cars. Uber may need to develop the technology on its own or partner up with one of the several automobile manufacturers that have said that they are working on a self-driving car, but it is not clear whether they can match the progress already made by Google.
