# When asset light becomes an asset liability

By [Brandon Donnelly](https://brandondonnelly.com) · 2026-04-22

uber, mobility, tech, business, waymo, av, electric-vehicles, transportation

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One of the great features of the so-called gig economy is that many of its businesses operate with an asset-light model. Uber, for instance, relies on drivers showing up with their own cars. This is the opposite of, say, the real estate industry, which, for a lot of business models, is both capital-intensive and asset-heavy.

But there is one problem with the asset-light model, and it's that it may not work forever. The _Financial Times_ just [reported](https://www.ft.com/content/564c26d9-489c-435b-88f7-2df388e058d3?shareType=nongift&syn-25a6b1a6=1) that Uber has committed to spending $10 billion over the next few years on actual cars and on equity investments in various strategic companies.

For instance, earlier this month, electric vehicle company Lucid [announced](https://ir.lucidmotors.com/news-releases/news-release-details/lucid-receive-new-investments-pif-and-uber-uber-and-lucid-expand) that Uber will be investing $500 million in the company and buying at least 35,000 of its cars.

This is gig-economy blasphemy, but it's very obviously an existential concern for the company. Uber needs to be in the AV race, or else asset-light could be an asset-liability. The thing that helped Uber become successful in the past now seems to be what they need to overcome in this new mobility race.

On a loosely related note, I find it somewhat amusing that cities are now starting to push back against robotaxis out of fear that they will displace Uber drivers. If you were following Uber in its early days, you'll know that cities fought the company vehemently because of the taxi lobby. Now they're trying to protect it.

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_Cover photo by_ [_Erik Mclean_](https://unsplash.com/@introspectivedsgn?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText) _on_ [_Unsplash_](https://unsplash.com/photos/a-close-up-of-a-cars-tail-light-3HL4_w75YgE?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText)

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*Originally published on [Brandon Donnelly](https://brandondonnelly.com/when-asset-light-becomes-an-asset-liability)*