Baidu Partners with Uber, Lyft for Robotaxi Expansion; Stock Sees 60% Upside

Baidu Inc. is partnering with Uber and Lyft to expand its robotaxi business into Europe. Baidu stock trades at a 78% discount to its 52-week high, with a consensus Hold rating of $105.1 per share. Citigroup analyst Alicia Yap sees Baidu as a Buy with a $140 per share price tag, implying a 60% rally. Investors can also play the theme through Uber and Lyft.

Baidu Inc. (NASDAQ: BIDU) is making significant strides in the autonomous vehicle (AV) sector by partnering with Uber Technologies Inc. (NYSE: UBER) and Lyft Inc. (NASDAQ: LYFT) to expand its robotaxi business into Europe. This strategic move is set to accelerate the adoption of AV technology in the region, leveraging Baidu's Apollo Go autonomous vehicles and Lyft's established European network.

The partnership, announced on August 4, 2025, marks Baidu's first major expansion of its autonomous ride-hailing services beyond China. Initial rollouts are planned for Germany and the UK in 2026, pending regulatory approval [2]. This expansion is a crucial milestone for Baidu, which is pivoting to AI and international AV deployment to offset slower growth in its core online marketing segment.

Baidu's stock currently trades at a 78% discount to its 52-week high, with a consensus Hold rating of $105.1 per share [1]. However, Citigroup analyst Alicia Yap sees Baidu as a Buy with a $140 per share price tag, implying a 60% rally. This view suggests that the market may undervalue Baidu's potential growth, particularly in its AV business.

Investors have two primary ways to play this theme. The first is to invest directly into Baidu stock, which offers a steep discount in the technology space. The second is to gain exposure through Uber and Lyft, which are already well-positioned to facilitate technology implementation and consumer adoption in Europe.

Uber's partnership with Baidu is expected to facilitate a smoother process for technology implementation and consumer adoption, given that consumers already trust the Uber brand. Lyft, on the other hand, has yet to land its first robotaxi collaboration in the United States but has acquired German rideshare platform FreeNow, signaling its early-stage presence in Europe.

While Baidu's expansion into Europe presents significant opportunities, investors should be aware of potential risks, such as regulatory hurdles and the ongoing pressure in Baidu's legacy advertising business. However, successful execution and scaling of autonomous ride-hailing outside China could provide fresh revenue streams that may help offset declines in legacy segments.

In conclusion, Baidu's partnership with Uber and Lyft to expand its robotaxi business into Europe is a strategic move that could drive significant growth for the company. Investors should carefully consider the potential risks and opportunities before making any investment decisions.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/BIDU/pressreleases/34205560/baidu-teams-with-uber-and-lyft-on-robotaxisstock-upside-ahead/
[2] https://simplywall.st/stocks/us/media/nasdaq-bidu/baidu/news/will-baidus-bidu-autonomous-vehicle-push-in-europe-with-lyft