Uber’s Head of Product Discusses Hotels, Robotaxis, and the Company’s Focused Vision Beyond Universal Service

Uber has been expanding its reach beyond its core businesses of ride-hailing and food delivery over the past year. Users can now book hotels through a partnership with Expedia, access concierge services, and even rent boats in Europe within the app.

Internally, the company is also developing new initiatives such as debit cards for drivers and a data collection unit, AV Labs, which focuses on gathering extensive driving data through sensor-equipped vehicles. Uber views this as a means to enhance its collaborations with autonomous vehicle partners, while also ensuring it remains competitive against firms like Waymo, with whom it shares some stakes, by controlling crucial data resources.

The prospect of Uber transforming into an “everything app,” akin to some super-apps in Asia, remains uncertain. In a recent discussion, Uber’s Chief Product Officer Sachin Kansal elaborates on the company’s ambitions in financial services, its relationship with Waymo, the role of AV Labs, and the integration of AI into services for both riders and drivers.

This conversation has been condensed for clarity.

TC: You recently introduced hotel bookings, boat rentals, and new shopping features. How did you determine which services to offer?

SK: Each year, our teams generate a multitude of ideas, some of which we choose to showcase prominently. This year, we focused on travel since users often take Uber beyond their home cities. The key announcement was our partnership with Expedia to offer hotel bookings. However, travel encompasses more, such as transport to hotels and food needs, prompting us to develop features like “shop for me,” enabling users to order items from local stores that are not on Uber Eats. Travel has become the third pillar alongside rides and delivery.

Is Uber considering launching its own financial services similar to those of Asian all-in-one apps?

Our financial services cater to various stakeholders, including consumers, drivers, couriers, and merchants. Currently, we offer products mainly for drivers and couriers, such as the Uber Pro card, which serves as a debit card for their earnings. We are also exploring options for merchants in select regions. For consumers, Uber credits exist within our membership program, providing benefits like cashback on hotel bookings, which can be redeemed for rides and meals.

Could Uber ever introduce its own buy now, pay later scheme?

It’s uncertain; we prefer established experts in the field to manage such services. We have partnerships with companies offering this feature, which allows users to utilize it at checkout. Our strategy doesn’t involve trying to be everything to everyone.

In the case of boat rentals, users are directed to a partner’s booking system rather than completing transactions within Uber. Is this indicative of future strategies?

In certain scenarios, especially when we venture into new areas, it may be beneficial to rely on partners initially. For Expedia, we opted for a deeper integration by creating a fully formed UI together. However, in other cases, we might direct users to our partners for specialized expertise before considering deeper integration.

Your Uber One membership has grown to 51 million members, accounting for about half of bookings. Is there evidence that this encourages users to cross-utilize services?

For delivery, users typically need two to three orders to justify the monthly fee, and as they become accustomed to the benefits, they tend to increase usage in both their current line of service and explore others, such as moving from mobility to delivery and vice versa.

Delivery has struggled with profitability. Is Uber Eats still reliant on ride-hailing for support?

Initially, Uber Eats was not profitable, but in recent quarters, it has become a self-sustaining and profitable business.

An article I wrote highlighted Uber as a competitor to Airbnb, especially with its new airport transfer service. Do you see this rivalry?

While there are numerous competitors — including Lyft, Didi, and DoorDash — my focus is primarily on providing maximum value to our users rather than on the competition.

You recently ended the Waymo pilot in Phoenix while growing in other cities. How do you maintain clarity when partnering with counterparts who may also be competitors?

Phoenix was our initial launch city with Waymo, starting with a limited fleet. However, as we expanded our operations to places like Austin and Atlanta with larger fleets, we mutually agreed to discontinue the pilot there. While Waymo is a solid partner, they can also be viewed as competitors in some markets. Our approach isn’t to become a leading provider of L4 autonomy but to create a network that effectively utilizes both human and autonomous drivers simultaneously to balance demand and supply.

What unique offerings does Uber’s AV Labs present to autonomy partners?

We are planning to equip many vehicles with sensors and collect extensive driving data over millions of miles. This effort addresses the need to understand diverse driving scenarios and edge cases. Additionally, our operational expertise, particularly in handling issues like lost items, can provide valuable insights to our autonomy partners.

Is Uber selling driver and rider data to generative AI companies?

Yes, we can label data using our earners, and we have commercial agreements in place which allow us to provide this data to Gen AI firms. This new avenue is promising for our business, while AV Labs continues to explore other data-sharing models with our partners.

Are drivers capturing conversations with riders for data purposes?

No, absolutely not. I want to clarify that no conversations are recorded during rides. When drivers are not actively transporting passengers, they may engage in tasks such as audio transcribing for which they are compensated.

In what ways has AI made an impact that could be noticeable to riders or drivers?

For our earners, we offer an assistant that suggests optimal areas to work based on demand. Meanwhile, on the Eats side, users can quickly generate grocery lists. Additionally, riders can request services via voice, such as organizing transport to the airport.

Is a feature that fully manages travel planning on the horizon?

It’s difficult to provide a specific timeline or function details, but I believe AI will greatly aid in simplifying trip planning, allowing users to express their needs while the system manages the complex logistics. We are conscious of ensuring the quality of any solutions we introduce.

As Chief Product Officer, how do you prioritize among the array of ongoing projects?

I devote the majority of my time, around 70-80%, to ensuring our current products and impending launches are robust. New ideas can be appealing, but the majority often need careful consideration. Thus, I only allocate about 20% of my focus to new initiatives — including firsthand experiences by driving and delivering, which helps me understand our products from the user perspective.