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Uber names Melbourne as first non-US city for flying car program
By Rob Lever
Washington (AFP) June 11, 2019

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Uber hurt by political 'market swirl' after IPO, CEO says
Washington (AFP) June 11, 2019 - Uber chief executive Dara Khosrowshahi said Tuesday the company's slump following its share offering last month was due to a "market swirl" over tariffs that won't affect its long-term performance.

Speaking at a Washington forum, Khosrowshahi said Uber remains focused on growth over the next several years but that he sees a road to profitability for the ride-hailing giant.

"We got caught up in a bit of a market swirl, and there's nothing you can do about that," Khosrowshahi said in an on-stage interview sponsored by the Economic Club of Washington.

Khosrowshahi said the record drop after the initial public offering was likely due to trade frictions stemming from President Donald Trump's tariffs announced on China.

The rocky debut does not change the long-term outlook for Uber, which he said is moving beyond ride-sharing into electric bikes and scooters, meal deliveries and has a long-term project on flying taxis.

"If we work on creating a great enterprise, the market will take care of itself," he said.

Khosrowshahi said Uber is aiming for a slice of a global transportation market worth some $16 trillion, allowing significant opportunities.

"We think it's time to lean forward," he said.

"The business itself can be quite profitable -- we're confident of that -- but the next two, three, four years are going to be about growth."

Khosrowshahi's appearance coincided with the debut of the Uber Elevate summit in Washington discussing Uber's plans to create a network of flying taxis in some markets by 2023.

Asked about Uber's plans for autonomous vehicles, he said he does not expect self-driving taxis for at least 15 years but that some automation will be integrated sooner.

Khosrowshahi said there may be some self-driving vehicles for the "easiest" trips within five years.

But for fully autonomous rides, "we're going to be incredibly careful and we'll be absolutely sure safety comes first."

Uber on Tuesday selected Melbourne, Australia, as the first non-US city for its aerial ridesharing service that is expected to launch in 2023, as it unveiled new partners for the ambitious initiative.

Melbourne was named the third official pilot city for Uber Air, joining Dallas and Los Angeles. Test flights are to start in 2020 with commercial operations planned for 2023.

The news came at the Uber Elevate Summit in Washington, where the California-based ride-hailing giant offered new details on its vision for flying taxis as a way to ease traffic congestion and improve urban mobility.

"Australian governments have adopted a forward-looking approach to ridesharing and future transport technology," said Susan Anderson, Uber's manager for the region that includes Australia.

"This, coupled with Melbourne's unique demographic and geospatial factors, and culture of innovation and technology, makes Melbourne the perfect third launch city for Uber Air. We will see other Australian cities following soon after."

Since first announcing its plan for shared aerial transport, Uber has been adding new partners and details for the initiative.

This week, Uber announced it was adding new aircraft partners to the program, including Pennsylvania-based Jaunt Air Mobility, which will produce a rotor- and fixed-wing light aircraft.

Uber also revealed and air taxi cabin design in collaboration with French engineering group Safran.

"Together with Safran Cabin, we've designed for the first time in history, a bespoke aircraft cabin that is truly mission-driven for aerial ridesharing on Uber Air," said John Badalamenti, Uber Elevate's head of design.

Uber also displayed the concept Bell Nexus flying quadcopter vehicle unveiled this year, expected to be part of the Uber fleet, and new designs for its "skyports" that will make up the network for the aircraft.

- Air rides 'for masses' -

The Uber Air service is designed to work in tandem with Uber's car service as a "multimodal" option that helps speed passengers to their destinations.

The aerial option will be included on the Uber smartphone app that will include ground and air transportation and pool travelers into one aircraft.

Uber last week announced a first step toward the aerial rideshare program, a helicopter service to New York's John F. Kennedy Airport from lower Manhattan.

Uber chief executive Dara Khosrowshahi said earlier Tuesday that the helicopters will eventually be replaced "by a generation of electrically powered vertical takeoff and landing vehicles."

Khosrowshahi said Uber's large user base can help stimulate demand for aerial ridesharing.

"We want to get the industry moving and designing these vehicles so that they can be available for urban transportation," he said in an on-stage interview sponsored by the Economic Club of Washington.

He added that "we want a pricing of this service that will be available for the masses versus just the elites."

Eric Allison, head of Uber Elevate, told the conference the electric aircraft are "surprisingly efficient" and similar in cost to the standard UberX car service.

"It will be something like $6 per seat mile," Allison said. "We think we can do better than the price of UberX."


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