Waymo will have Horrible unit economics for 5-10 years and Uber can make money from them from day 1 of the partnership.
Explanation
The statement presents a stark comparison between Waymo's future unit economics and Uber's expected profitability from their partnership. However, insights from a recent JPMorgan analysis indicate that Waymo has positive unit economics in San Francisco, contradicting the claim of 'horrible' unit economics. Furthermore, the expanding partnership implies that Uber will leverage Waymo's technology, which could enhance fleet efficiency and operational synergies, potentially allowing Uber to monetize the arrangement effectively from inception. Given that Waymo's vehicles are designed to operate autonomously, they may indeed face underutilization during specific hours; however, over a longer horizon, their operational capacity could improve as the market matures and penetration increases. Therefore, while Uber's ability to earn revenue soon is plausible, the assertion about Waymo's long-term economic outlook lacks supporting evidence.
Key Points
- JPMorgan reports indicate Waymo has positive unit economics in SF, contradicting the claim of horrible unit economics.
- Uber's profit from the partnership could be feasible from day one, but does not imply Waymo will struggle economically for 5-10 years.
- The assertion about Waymo's long-term financial viability is unfounded based on available data.
