onetozero

Ridesharing is growing year after year, so their top line is growing fast. Self driving cars would remove the biggest expense which is the human driver, so the expenses will drop a lot. Currently it costs $1.50 a mile with a human driver, and should get down to $0.50 without a driver. The lower costs will increase the profit, and way increase the volume of people using Uber.

Although unlikely, Uber might actually rewrite the auto industry. Investors are essentially playing roulette with Uber, and view the company as a potentially huge payout, although with low odds. As an illustration, investors might model a 12% chance of $500B, and model a 88% chance of bankruptcy, which would be $60 Billion of valuation.