Uber, WRD Launch Robotaxis in Riyadh: More Upside for UBER Stock?

Uber Technologies UBER, in association with WeRide WRD, a global leader in autonomous driving technology, based in China, has launched autonomous robotaxi passenger services in Riyadh. This marks the first time autonomous vehicles (AVs) are available to the public on the Uber platform in Saudi Arabia.

This initiative marks a major step forward in Uber’s collaboration with the Transport General Authority (“TGA”) and supports Saudi Arabia’s Vision 2030 goals to pioneer innovation in smart and sustainable mobility. Following the launch, Uber users traveling between Roshn Front and Princess Noura University have the option to choose a WeRide Robotaxi GXR, giving them a first-hand experience of autonomous transportation in the Kingdom.

During the initial phase, each Robotaxi will have a vehicle operator on board to provide a safer and more reliable experience for both passengers and pedestrians. Over time, the service is expected to transition to fully autonomous, driverless operations.

This development builds on the Initial Operational Phase of Autonomous Vehicles, which was launched in July. Before this, WeRide’s Robotaxi received Saudi Arabia’s first autonomous driving permit, becoming the first AV technology company to complete the TGA’s Regulatory Sandbox for AV testing in the Kingdom. This milestone also comes after WeRide’s public debut on the Uber platform in Abu Dhabi at the end of 2024.

The above association highlights Uber’s asset-light approach through strategic partnerships to gain a stronghold in the evolving and highly lucrative robotaxi market. The deal underscores Uber’s commitment to integrating cutting-edge AV technologies into its platform. With this approach, Uber has avoided the massive R&D costs associated with developing autonomous systems independently.

Uber’s AV ambitions are gaining real-world traction through scalable, cross-market deployments. While macro risks and regulatory scrutiny remain, Uber’s ability to scale both its core businesses (mobility and delivery) and emerging automation initiatives positions it well for long-term growth. Uber is focused on unlocking growth in suburban and low-density markets.

WeRide, too, is making a name for itself with rapid global expansion. In August 2025, Southeast Asia’s superapp Grab GRAB made an investment announcement in WeRide to accelerate the deployment and commercialization of Level 4 robotaxis and shuttles across Southeast Asia. The investment is expected to be finalized by mid-2026.

Recently, WeRide announced it will deploy its GXR and Robobus vehicles in Singapore through Ai.R, Grab’s first autonomous ride service for consumers, operated in partnership with the former. The company will run an 11-vehicle fleet across two routes in Punggol, marking the city’s first autonomous shuttle service in a residential area. Grab expects Ai.R to start transporting passengers by early 2026. Beyond China as well, WeRide is expanding rapidly. Its partnership with Uber is a testimony to the expansion efforts. 

Uber’s Price Performance, Valuation, and Estimates

Shares of UBER have gained 59.3% so far this year compared with the Zacks Internet-Services industry’s 36.8% increase in the same timeframe.

YTD Price Comparison

From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 3.38X. UBER is inexpensive compared with its industry.

The Zacks Consensus Estimate for UBER’s third-quarter, fourth-quarter, full-year 2025 and 2026 earnings has remained stable over the past 60 days.

UBER's Zacks Rank

UBER currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


 

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This article originally published on Zacks Investment Research (zacks.com).

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