The end of the driver’s license: Uber exec calls car ownership ‘the most inefficient asset’ and says no one will need one in 15 to 20 years

For generations of American teenagers, turning 16 and getting a driver’s license has been a rite of passage—and a first taste of independence.

But that milestone could soon become a thing of the past, according to Andrew Macdonald , president and chief operating officer at Uber .

“In some future world, maybe not five years, but 15 or 20 years, everyone’s going to be like Harry—nobody’s going to own a car,” Macdonald said in a recent episode of the 20VC podcast with host and entrepreneur Harry Stebbings .

“Nobody’s going to have their driver’s license because you’ll be able to get around.

And I think bikes and scooters will be part of that.

I think autonomous vehicles will be part of that.

I think public transportation will be a big part of that, but I don’t think you need to own a car.” That future would represent a dramatic shift for a country where car ownership has been synonymous with the American Dream .

But with new vehicle prices having soared 30% over the last six years , Macdonald argued that the economics don’t make sense when vehicles spend most of their time sitting unused.

“The individually owned car is the most inefficient asset that anyone owns, and certainly at any level of price point,” Macdonald said.

“It sits idle 98% of the day.

It’s depreciating.

The ongoing operating costs are actually high—even if you’re not driving it, you’re paying for that insurance clip.” The shift could also prove lucrative for Uber .

While the ride-sharing giant abandoned its plans to develop its own fleet of self-driving cars, it has increasingly positioned itself as a platform for autonomous vehicles, partnering with companies including Waymo and Waabi to bring their vehicles onto its network.

Uber’s CEO calls MacDonald an ‘execution machine’—he says these 2 principles drive his success A Canadian native, Macdonald graduated from the Ivey Business School at Western University in Ontario in 2007 before starting his career as a Bain consultant.