"While speaking this month at a summit hosted by the "All-In" podcast, Khosrowshahi fielded a question about how Uber would handle ownership of the self-driving cars that it plans to add to its operations in the coming years. All-In posted a video of the conversation on Wednesday. "You're going to have financial owners that own big fleets of cars that are on our network," Khosrowshahi said. "All of these cars are going to be financeable," he said."
"Before becoming Uber's top executive, Khosrowshahi was CEO of travel search site Expedia. He said that major hotel brands like Hilton or Marriott don't typically own their hotels. Like other commercial real estate properties, such as shopping malls, hotels are often owned by real estate investment trusts, or REITs. "Those hotels are owned by financial-only players," Khosrowshahi said at the event. The trusts typically handle many of the expenses of owning the properties, such as maintenance and taxes, while receiving income through rent."
Uber faces a core decision about who will own and maintain self-driving vehicles once gig drivers are removed from operations. One possible model mirrors commercial real estate: financial owners or trusts buying fleets and financing cars placed on a network, while handling upkeep, taxes, and other ownership costs. Hotels and shopping malls often use REITs that receive income through rent while day-to-day operations are run by brands. Investors could play a REIT-like role for autonomous fleets within a decade. Uber currently avoids owning major assets by relying on independent drivers using personal cars.
Read at Business Insider
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