Mercedes Could Build a Driverless Uber

TIME

The race is on for automakers looking to develop a marketable driverless car, but Mercedes-Benz is now considering taking that technology a step further to compete with companies like Uber.

The German automaker, which is owned by Daimler, is mulling over the idea of developing an on-demand limousine service that uses autonomous cars, Daimler CEO Dieter Zetsche told Reuters this week. Building an extensive fleet of autonomous vehicles that could reach a new customer segment — one that is more interested in on-demand transportation than actually owning a vehicle represents “a concrete development goal of ours,” Zetsche told Reuters.

For Uber, Zetsche’s words likely sound like a challenge, as the ride-hailing service has been reportedly testing self-driving car technology for some time in an effort to eliminate one of its biggest costs: it’s legion of drivers. (Uber could also sidestep the startup’s ongoing legal battle over whether it can consider…

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