Uber Technologies said Friday it is now offering autonomous vehicles on its app in Abu Dhabi through a partnership with China mobility company WeRide. Uber stock regained some ground in early trading after shares slid Thursday.
The companies first announced they would partner to offer robotaxis on the Uber app in September, focused on markets outside the U.S. and China. Starting Friday, Uber riders in Abu Dhabi requesting UberX or Uber Comfort can be matched with a robotaxi from WeRide. The cars will include a "safety operator," however, with the goal of being fully driverless sometime next year.
On the stock market today, Uber stock is up more than 1% at 65.99 in premarket trading. Shares fell 10% yesterday after Waymo announced it would expand its Waymo One app to Miami.
Uber Stock: Robotaxi Concerns
The harsh response in Thursday trading underscores investor fears that robotaxi technology could disrupt Uber's hold on the ride-hailing market. Along with Alphabet's Waymo, Teslais planning to launch next year a robotaxi ride-hailing service that Chief Executive Elon Musk has envisioned as a cross between Uber and Airbnb.
Uber is partnered with Waymo in Phoenix and for the self-drive car company's upcoming expansion to Austin and Atlanta. But Waymo will offer the Miami robotaxis only through its own app. Uber stock tumbled below its 200-day moving average, while shares of Uber rival Lyft fell by 10% on the news.
The robotaxi concerns have contributed to Uber gaining just 6% this year, after the stock jumped 150% in 2023. But some analysts see the fears as overblown.
Jefferies analyst John Colantuoni wrote late Thursday that self-driving cars will likely increase Uber's total addressable market.
He added, "We also believe AV developers will ultimately choose to partner rather than pursue standalone fleets, given that ride-share players can help robotaxis (1) maximize utilization, (2) optimize logistics/pricing, (3) address barriers to changing preferences, (4) provide fleet management expertise, and (5) help navigate/establish local regulation."
Jefferies holds a buy rating on Uber stock.
Uber Partnering With AV Providers
The WeRide and Waymo partnerships are among several deals Uber has struck to bring AVs to its platform. Uber is also working with the GM-backed Cruise and Avride, part of Nebius Group.
Lyft last month announced its own AV-focused partnerships, including with technology developer Mobileye (MBLY).
