In a recent interview, Uber Technologies Inc.’s chief executive, Dara Khosrowshahi, painted a stark picture of the ride-hailing industry’s future, warning that the rise of self-driving cars could lead to significant job displacement for human drivers. Speaking candidly, Khosrowshahi acknowledged that while demand for rides will continue to grow, autonomous vehicles will eventually supplant many drivers, creating what he termed “a real issue” for society. This comes as Uber pushes aggressively into autonomy, partnering with companies like Alphabet Inc.’s Waymo to integrate robotaxis into its platform.

The comments, detailed in a Business Insider article published on September 19, 2025, highlight a timeline where human drivers remain essential for the next five to seven years due to surging demand. However, Khosrowshahi projected that in 10 to 15 years, the shift to robotaxis could displace workers on a massive scale, posing “a big, big societal question” without easy answers. This perspective aligns with Uber’s strategic pivot, as the company reported in its latest earnings that Waymo’s self-driving cars in cities like Atlanta and Austin are already completing more daily trips than 99% of human Uber drivers.

The Broader Implications for Labor Markets

Industry analysts see this as part of a larger transformation in transportation, where automation promises efficiency but threatens livelihoods. Khosrowshahi’s remarks echo concerns raised in a BizToc summary of his statements, noting that self-driving fleets could disrupt not just ride-hailing but also delivery and logistics sectors. Uber’s CEO suggested that while short-term growth will absorb more drivers, the long-term economics favor machines, which don’t tire, demand salaries, or unionize.

Comparisons with competitors underscore the urgency. Tesla Inc., led by Elon Musk, is betting on a camera-only approach to autonomy, but Khosrowshahi has publicly doubted its viability in the near term, praising instead the lidar and radar systems used by Waymo. As reported in a separate Business Insider piece from September 21, 2025, he even floated real estate investment trusts (REITs) as a financial model for managing autonomous fleets, where companies like Uber could own vehicles and lease them out, much like property holdings.

Financial Models and Societal Challenges

This REIT analogy points to a potential revenue boon for Uber, which has long grappled with thin margins due to driver payouts. By transitioning to owned or partnered robotaxis, the company could capture more of the value chain, potentially turning autonomy into a trillion-dollar market in the U.S. alone, as Khosrowshahi enthused in earlier CNBC appearances referenced across industry reports. Yet, the human cost looms large: millions of gig workers worldwide rely on platforms like Uber for income, and mass displacement could exacerbate inequality, especially in urban areas where driving jobs are a lifeline for low-skilled labor.

Policymakers and labor groups are already sounding alarms. The Economic Times, in a September 19, 2025, article, amplified Khosrowshahi’s prediction, framing it as a harbinger of an AI-driven “takeover” in transportation. Unions representing drivers have called for retraining programs and universal basic income pilots, arguing that tech giants must share responsibility for the fallout.

Uber’s Strategic Positioning Amid Uncertainty

Uber’s own trajectory reflects this dual-edged sword. The company has invested billions in autonomy, including a high-profile deal with Waymo to deploy robotaxis in select markets, as noted in CBS News coverage from June 2025. Khosrowshahi, an Iranian immigrant who rose from refugee to tech titan, brings a personal lens to these issues, often highlighting immigration’s role in innovation during interviews. Still, his optimism about tech’s potential clashes with the societal friction ahead.

Critics, including posts on X (formerly Twitter) from users like investor Puru Saxena, celebrate the trillion-dollar upside for stocks like Tesla, while others, such as analyst Gordon Johnson, warn of global economic depression from widespread job loss. Khosrowshahi himself admits there’s no “neat answer,” suggesting a need for collaborative solutions between industry, government, and workers.

Looking Ahead: Balancing Innovation and Equity

As autonomous technology matures—evidenced by Waymo’s superior trip metrics—Uber’s leadership must navigate not just regulatory hurdles but ethical ones. In China, where electric vehicles dominate, Khosrowshahi has praised the competitive edge in a Business Insider interview from August 2025, hinting at global lessons for scaling autonomy. For now, the company insists demand will sustain human drivers, but the clock is ticking toward a reckoning.

Ultimately, Khosrowshahi’s warnings serve as a call to action for an industry on the cusp of revolution. Without proactive measures, the promise of self-driving cars could yield unintended consequences, reshaping economies in ways that demand thoughtful intervention. As Uber forges ahead, the real test will be whether it can innovate responsibly, ensuring that progress doesn’t leave its workforce behind.