A global push toward driverless rides is accelerating as companies race to tap new markets where autonomous fleets can scale.
It is a shift defined by heavy investment, uneven regulations, and soaring production costs — yet Japan is emerging as a standout opportunity, according to Uber Technologies Inc. (NYSE:UBER) CEO Dara Khosrowshahi.
Khosrowshahi told Bloomberg in a recent interview that Japan has “great potential” for robotaxis as he targets “10-plus markets,” even with autonomous vehicles that analysts estimate can cost about $150,000 each to build and equip.
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He said several Asia-Pacific markets could support Uber’s next phase of autonomous growth as ride-hailing demand rises across the region. Khosrowshahi said Japan’s aging population creates a long-term transportation challenge, particularly in rural areas where mobility options are limited.
He identified Hong Kong and Australia as markets that could support wider deployment once regulatory conditions align. Uber has said strong infrastructure and large rider bases are important factors for scaling autonomous services.
The comments come as governments and companies across Asia continue investing in automated mobility technologies for both urban and regional use.
Market analysts view autonomous mobility as a long-term opportunity, with Morgan Stanley projecting in August that Level 4 robotaxis could account for about 8% of China’s ride-hailing fleet by 2030.
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Khosrowshahi told Bloomberg that Uber’s strategy centers on partnering with companies that develop autonomous driving systems rather than building vehicles itself.
He said Uber works with more than 20 autonomous and mobility partners worldwide, including Baidu Inc. (NASDAQ:BIDU), WeRide, and Pony.ai in China and Waymo in the U.S. Those partnerships, he said, allow Uber to integrate different self-driving platforms into its marketplace as cities move toward permitting commercial use.
Khosrowshahi said the autonomous sector is unlikely to be dominated by a single company, noting that several firms are advancing similar technologies at the same time. Uber’s approach, he said, is to support multiple systems while working closely with regulators, which he described as critical to expanding autonomous fleets.
