Uber Launches Robotaxi Service in Atlanta With Waymo: What's Ahead?

Furthering its robotaxi-related ambitions, Uber Technologies UBER launched an autonomous ride-hailing service in Atlanta with Alphabet’s GOOGL Waymo. This has already been available in the service in Austin, TX, since March. There are, at present, around 100 Waymo vehicles on the Uber platform in Austin.

Following the launch in Atlanta, Uber will manage and dispatch a fleet of fully autonomous, all-electric Jaguar I-PACE vehicles. Riders will shell out the same rates as UberX, Uber Comfort or Uber Comfort Electric when driven in a Waymo self-driving vehicle.  The service currently covers 65 square miles around the city but does not include highways. Rides are only available through the Uber app.

Apart from the partnership with Alphabet’s Waymo, Uber has associations with many other vehicle firms, as it aims to gain a stronghold in the robotaxi market.  Earlier in the year, Uber inked a robotaxi-related deal with NVIDIA NVDA. The partnership aims to accelerate the development of autonomous driving solutions. By leveraging NVIDIA’s cutting-edge AI platforms, Cosmos and DGX Cloud, and Uber’s vast ride-related data, the partnership looks to create scalable and efficient Autonomous Vehicle (“AV”) models. The alliance with NVIDIA could redefine the competitive dynamics in the robotaxi market.

By adopting this partnership-driven approach, Uber has avoided the massive R&D costs associated with developing autonomous systems independently. In 2020, Uber sold its self-driving division but continued to focus on becoming the ultimate ride-hailing super app. The company has plans to expand its self-driving taxi service further. Uber now has a run rate of 1.5 million autonomous taxi and delivery trips on its network.

Uber’s dominant market share in the ride-hailing industry also gives it a unique advantage in the AV space. With its vast network of drivers and customers, Uber can quickly scale autonomous services once the technology matures. Its app is designed to integrate AVs from multiple partners, giving users a variety of options. Uber’s strategy of leveraging external expertise could prove to be very effective as it aims to gain a stronghold in the robotaxi ride-hailing market, offering massive growth opportunities. The race to deploy robotaxis at scale is set to reshape transportation.

UBER’s Price Performance, Valuation & Estimates

Shares of UBER have gained 48.9% in the past six months, outperforming its industry’s 12.3% decline in the same timeframe.

From a valuation perspective, UBER appears overvalued. Going by its price/earnings ratio, the company is trading at a forward earnings multiple of 28.63, up from the industry’s 17.8. The company has a Value Score of D.

The Zacks Consensus Estimate for UBER’s 2025 and 2026 EPS has moved up in the past 30 days.

UBER’s Zacks Rank

UBER carries a Zacks Rank #3 (Hold) at present. 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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