Uber Technologies Chief Executive Dara Khosrowshahi announced what he said were sustainability-focused updates for the ride-hailing company, including the option for riders to add a preference for electric vehicles. Uber stock traded higher Tuesday morning.
In a company blog post, Khosrowshahi said the moves are part of a previously announced goal to be a "zero-emission platform" by 2040. Khosrowshahi said riders will be able to choose to only ride in EVs in more than 40 cities through its Uber Green. A version of the service that also includes hybrid vehicles is available in 200 cities overall.
To help drivers adopt electric vehicles, Uber will launch an AI chat assistant and "EV Mentor" program to help answer question about EVs. OpenAI's ChatGPT will power the AI assistant, Uber said.
On the stock market today, Uber stock gained more than 2% to 76.50.
Uber's New LaGuardia Route
Uber's announcements come as the company is hosting a sustainability conference in London.
The EV-only Uber Green service is available in New York City, Los Angeles, Philadelphia and San Francisco, among other U.S. cities. It also available in some international cities, including Paris.
Meanwhile, the new "EV preference" feature allows users to say they prefer a ride from an electric vehicle.
"If the ETA is within a few minutes of a standard UberX, your EV ride will be on the way," Uber's blog post said.
Uber also announced a $18 shuttle service in New York City between Manhattan and LaGuardia Airport, starting today.
Uber Stock: Earnings Oct. 31
Uber stock has risen 21% this year but is still sitting below highs reached in early March. Shares have formed a consolidation pattern with an 82.14 buy point, according to IBD MarketSurge.
The company will release its third quarter earnings report Oct. 31.
Ahead of the report, analysts with Truist on Monday raised their price target for Uber stock to 99, from 88, and reiterated a buy rating.
"Demand remains healthy, driven by a resilient consumer, sticky products and ongoing improvements to the platform," Truist analyst Youssef Squali wrote to clients Monday.
One factor to watch: Tesla's robotaxi event on Thursday. The potential for Tesla to launch a competing service has startled some Uber investors since it was previewed this spring.
Uber has reached several partnerships with AV operators to put robotaxis on its platform, including an expanding deal with Waymo.
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