WEBVTT - Bloomberg's Chafkin on Uber's Self-Driving Fleet Launch (Audio)

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<v Speaker 1>And talking about driving the bus, you won't have to

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<v Speaker 1>actually drive the bus very long, at least according to Uber.

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<v Speaker 1>For example, in Pittsburgh, they will be introducing a fleet

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<v Speaker 1>of self driving automobiles this summer. Max Chafkin is technology

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<v Speaker 1>reporter for Bloomberg Business Week. You can be followed on

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<v Speaker 1>Twitter at c H A F K I N. Chafkin. Alright, Chafkin,

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<v Speaker 1>you're gonna get in one of those autonomous Volvos that

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<v Speaker 1>the Uber is going to be presenting in Pittsburgh. I

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<v Speaker 1>have to tell you I was in one of Uber's

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<v Speaker 1>self driving cars in Pittsburgh last month as part of

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<v Speaker 1>the reporting on this story. Um, this is huge news

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<v Speaker 1>in the world of self driving cars, and I guess

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<v Speaker 1>more broadly in the in the tech world, which has

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<v Speaker 1>been sort of uh, you know, vaulting towards this space.

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<v Speaker 1>Google and Apple of course are both plotting sort of

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<v Speaker 1>self driving Uber like services. And what Uber has done,

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<v Speaker 1>although they are probably not ahead of of Google technologically,

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<v Speaker 1>they went to market fast and um which has kind

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<v Speaker 1>of been there their calling card, and and so that's

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<v Speaker 1>pretty crazy. The other thing that we're reporting in the

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<v Speaker 1>story that's out today for Business Week is that Uber

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<v Speaker 1>is buying a company called Auto, which is a driverless

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<v Speaker 1>truck company that was founded by a number of key

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<v Speaker 1>members of the Google self driving car, the UM team.

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<v Speaker 1>So they're paying something like a little under seven hundred million,

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<v Speaker 1>we think. UM, so it's really a big coup for

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<v Speaker 1>for Uber in this kind of race to be first

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<v Speaker 1>in self driving. Your story notes, of course that Pittsburgh

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<v Speaker 1>is home to Carnegie Mellon Universities Robotics department, and that

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<v Speaker 1>Google worked with CMU to get this off the ground.

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<v Speaker 1>Tell us about that part of the story. So this

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<v Speaker 1>is kind of an angle that UM. You know, I

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<v Speaker 1>don't think everyone realizes, but CMU is like the place

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<v Speaker 1>to do robotics UH and machine learning research in the

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<v Speaker 1>United States. UM Sebastian Throne, who was the guy who

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<v Speaker 1>created the Google self driving car, UM was a professor there.

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<v Speaker 1>The guy who who was running the Google program and

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<v Speaker 1>just left, Chris Urmson. Came out of CMU. What Uber did,

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<v Speaker 1>and this is this was sort of mind blowing in

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<v Speaker 1>the world of of academia. Eighteen months ago. Basically went

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<v Speaker 1>to Pittsburgh and hired forty researchers at CMU and basically

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<v Speaker 1>one fell swoop shook things up in the in the

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<v Speaker 1>robotics department, in the robotics field, and UM since then,

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<v Speaker 1>you know, CMU has has hired new professors that they

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<v Speaker 1>seem to be doing fine. But Uber has UM, you know,

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<v Speaker 1>created this pretty impressive team in Pittsburgh that has like

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<v Speaker 1>five people. They're also, as we reported in the story,

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<v Speaker 1>they're opening uh two new offices, one in Palo Alto,

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<v Speaker 1>one in San Francisco. So we're seeing self driving cars

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<v Speaker 1>in Pittsburgh, UM, you know starting now or soon uh

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<v Speaker 1>in next you know, a couple of weeks. Uh, I

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<v Speaker 1>wouldn't be shocked if we start to see them in

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<v Speaker 1>Palo Alto and in San Francisco. Max. The cars, these Volvos,

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<v Speaker 1>these x C nine SUVs. UH, they're made by Volvo.

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<v Speaker 1>Volvo of course owned by China's Geely Holding a group.

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<v Speaker 1>What kind of technology is going into Is this it

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<v Speaker 1>proprietary or they're using chips? I mean we heard yesterday

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<v Speaker 1>from Mark Fields, the chief executive Afford uh talking about

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<v Speaker 1>veladne uh Lighter, the sensor technology company. What goes into

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<v Speaker 1>these cars? So it's all a little bit fuzzy right now.

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<v Speaker 1>But let me let me tell you what we know

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<v Speaker 1>one is that and we reported this today, but Uber

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<v Speaker 1>Involvo will spend three million dollars together to develop a

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<v Speaker 1>base car. Now that car, what I would imagine is

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<v Speaker 1>it will come out sort of as a Volvo self

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<v Speaker 1>driving car by one and a Uber Taxi version around

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<v Speaker 1>the same time. The cars that are out now are

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<v Speaker 1>basically modified Volvos. And and my I don't know for

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<v Speaker 1>sure like where the mix of labor is, but I

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<v Speaker 1>wouldn't be oct if I found out that most of

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<v Speaker 1>that was happening in Pittsburgh. One interesting thing about this

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<v Speaker 1>Auto acquisition you bring up light are Auto makes its

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<v Speaker 1>own lidar. So right now those cars in Pittsburgh are

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<v Speaker 1>using I believe Vela dine sensors. But I think one

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<v Speaker 1>of the things that interesting things about this acquisition is

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<v Speaker 1>they could probably bring that in house. And I think

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<v Speaker 1>that's almost certainly what's what they're thinking about. Safety, you know,

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<v Speaker 1>big concern, especially after the Tesla UH driver was killed

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<v Speaker 1>hitting a truck. Yeah, and and it's it's important to

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<v Speaker 1>say that first of all, with the pilot program, their

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<v Speaker 1>safety drivers in the cars, there are also co pilots

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<v Speaker 1>who are sitting there taking notes everything that happens in

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<v Speaker 1>the car is recorded, um, which is a little uh,

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<v Speaker 1>I mean, you know different, um. Uh. The other thing

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<v Speaker 1>is And this is something that Tesla has argued and

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<v Speaker 1>I think uber Um will argue as well. There's a

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<v Speaker 1>belief that not too long from now, it's going to

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<v Speaker 1>become clear that these things are safe and and so

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<v Speaker 1>and so, even though there are a few accidents, regulators

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<v Speaker 1>will come on board. Well, Max Chaffkin, Uh, I know

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<v Speaker 1>you're so glad you're gonna be tracking a force and

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<v Speaker 1>riding those self driving cars before I do. I want

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<v Speaker 1>to make sure they're safe before I hop on board.

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<v Speaker 1>Without those human monitors. Humans aren't safe either. There you go,

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<v Speaker 1>Max Chaffkin. Hey, I'm a great driver technology reporter for

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<v Speaker 1>Bloomberg Business Week. I'm Kathleen Hayes along with Pim Fox.

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<v Speaker 1>This is Bloomberg