Uber has made a strategic shift in its computing workload by moving some of its operations to Google Cloud and Oracle‘s servers. This move is a significant win for both companies, as they have traditionally lagged behind their public cloud market competitors. The announcement was made on Monday, signaling a departure from Uber’s long-standing strategy of relying on its own servers for the bulk of its computing needs.

Uber has used Amazon Web Services (AWS) in recent years, but still primarily relied on its own servers. In contrast, Lyft, Uber’s smaller U.S. ride-sharing rival, uses AWS to fully power its app. This new move by Uber signals a shift in approach to public cloud providers and may indicate a willingness to explore the cost and innovation benefits of using third-party cloud providers.

In the announcement with Oracle, Uber’s CEO, Dara Khosrowshahi, stated that the shift would help reduce overall infrastructure costs while also allowing the company to maximize innovation. Oracle will become a global “Uber for Business” client, providing its cloud infrastructure services to support Uber’s expanding business operations. In a separate announcement about the Google Cloud move, Uber stated that it aims to “modernize its infrastructure” while utilizing Google Cloud’s AI, machine learning, and security products.

The move is expected to help Uber reduce its infrastructure costs while also boosting its innovation capabilities. By using Google Cloud’s AI and machine learning capabilities, Uber can improve its user experience and ride-hailing services. Additionally, the security features of these third-party cloud providers are expected to provide enhanced protection to Uber’s vast data sets.

This strategic shift by Uber towards third-party cloud providers is a significant change in approach. It demonstrates the company’s willingness to explore and leverage the benefits of public cloud providers. This move is expected to lead to cost savings, greater innovation, and improved customer experience. It will be interesting to see how this shift affects Uber’s overall business operations and its relationship with cloud providers in the future.