At SXSW, Uber CEO, Mayor Kirk Watson talk about 'making mobility weird'

Uber CEO Dara Khosrowshahi and Austin Mayor Kirk Watsonwant to "make mobility weird" by investing more in the city's future transportation options.

During a Monday South by Southwest session, the two discussed the future of transportation, Uber's role in Austin, what transit and ride-hailing could look like locally, and what other solutions the city will need. The pair pushed for increased sustainable and affordable transportation options.

"We need more multi-modal transportation," Watson said, arguing the need for more public transportation, while acknowledging the city will have do a better job of coordinating with options like rideshare.

Khosrowshahi said Uber is also a "huge believer" in multimodal transportation and giving sustainable choices. The company has set the goal of having zero emissions in 2030 in the United States, Canada and Europe; and for 2040 globally.

Austin and Uber's complicated relationship

Uber and Austin didn't always have such agreeable positions, and Watson kicked off the session by acknowledging the "complicated history."

Between 2015 and 2017, Uber and Lyft pulled out of the city after Austin voted to require its drivers be fingerprinted. The schism was ultimately resolved when the Texas legislature ended up passing legislation requiring certain security measures, but not fingerprints.

Khosrowshahi said he was only an Uber user at the time, not the CEO, and while he thinks Uber could have handled things differently, he said the company believes the right way to regulate is on the state-level.

The comment comes as both Uber and Lyft are in another city-level battle, which Khosrowshahi did not mention. Minneapolis recently passed an ordinance to increase rideshare driver wages, and both companies are threatening to stop services in the city on May 1, according to the Minneapolis Star Tribune.

Watson said Austin needs rideshare, but also 'Project Connect'

Watson brought up the multimillion-dollar transportation plan 'Project Connect multiple times during the session, saying it's key to the future of Austin's transportation and affordability. The plan, which is one of the biggest ballot initiatives ever passed in Austin, calls for expanding the light rail, adding bus routes and improving transportation in Austin.

"It's under assault, but it is key to our ability to protect the environment and is key to our ability to be sustainable," Watson said, alluding to a lawsuit that accuses city of Austin leaders of misleading voters on the transportation investment.

Watson said transportation is huge when it comes to making Austin affordable, and said the city wants "every tool in the toolbox" when it comes to transportation. He also said the city is working to address affordability in multiple ways including putting housing near transportation and adding more and clean transit.

Micromobility: Scooters, e-bikes and sharing rides

While most people think of Uber for rideshare, Khosrowshahi said the company is increasingly trying to replace how people use their cars, through rideshare, delivery services and food delivery. The CEO said in certain cities the app is even promoting the use of other types of transportation, including public transit.

Uber, which is an investor and partner in scooter company Lime, lists its scooters on its app. Khosrowshahi said that for short rides it doesn't make sense for a car to be used, and said instead bikes and scooters can fill the gaps.

"Scooters and e-bikes were an unbelievable transportation revolution," Khosrowshahi said. "The amount of money that went into that sector was historic."

Uber is betting on electric vehicles

Khosrowshahi also spoke about the company's bets on electric vehicles, including that Uber drivers are switching to electric vehicles at high rates. In Austin, about 9% of drivers are using electric vehicles, he said. He added that Uber drivers are taking trips at up to five times the rate of other drivers, arguing the rate makes it important for them to switch go electric.

Khosrowshahi encouraged Watson and the city of Austin to put electric vehicle charging stations near where Uber drivers live, in order to incentivize more drivers to make the switch.

He also highlighted Uber's partnership with Hertz to rent out electric vehicles to Uber drivers, and a separate deal with Tesla allowing Uber drivers to get $2,000 off a vehicle. In 2022, Austin was among the first cities to pilot the company's Uber Comfort Electric program, a service allowing riders to request to be picked up by high-end electric vehicles.

How could autonomous vehicles fit in?

During the session, Khosrowshahi said he and Uber are big believers in the potential of autonomous vehicles. The company has partnered with Waymo to offer autonomous rides with no human driver in certain cities, not including Austin.

While Austin has long been a testbed for autonomous vehicles, Watson has more mixed feelings on the topic, saying the companies have come in with promises, but the vehicles have also brought some issues, including parking in the wrong spots and getting in the way of emergency vehicles. He also alluded to Cruise recently pulling out of Austin after the company paused operations nationwide following a high-profile incident in California where a vehicle hit and dragged a pedestrian.

He argued the cities need to come in ready to partner, and need to make sure the public good is not an afterthought.

"With the growth of Austin, and the desire for sustainability ... I see a lot of promise in (autonomous) vehicles," Watson said. "But we're not there yet."

This article originally appeared on Austin American-Statesman: Uber CEO, Mayor Kirk Watson talk mobility, EVs, AVs, Project Connect