Waymo Partners with Avis to Launch Robotaxi Service in Dallas: Analysts Predict Potential Downside of 40.34%

Waymo has partnered with Avis Budget Group to launch robotaxi services in Dallas. Analysts' average price target for Avis Budget Group suggests a potential downside of 40.34%, while GuruFocus estimates indicate a slight overvaluation of the stock.

Waymo, the leading self-driving technology company owned by Alphabet, has announced a strategic partnership with Avis Budget Group to launch robotaxi services in Dallas. The partnership aims to bring fully autonomous ride-hailing to the city, marking a significant milestone in both companies' expansion strategies.

Waymo, which currently operates in Austin, Atlanta, Los Angeles, Phoenix, and the San Francisco Bay Area, plans to scale its technology to new markets faster and more cost-effectively with the help of Avis Budget Group. The partnership will see Avis manage the fleet of all-electric autonomous Jaguar I-Pace vehicles, handling operations such as charging, maintenance, and depot management [1].

Avis Budget Group, a leading global provider of mobility solutions, will serve as Waymo’s fleet operations partner in Dallas. The company will deliver end-to-end services, including infrastructure, vehicle readiness, and maintenance. The public launch of Waymo's robotaxi service in Dallas is slated for 2026, with initial testing already underway [2].

The partnership between Waymo and Avis Budget Group is significant for both companies. For Waymo, it represents a step toward scaling its technology and expanding its commercial footprint. For Avis, it marks a pivotal milestone in its evolution from a rental car company to a leading provider of fleet management and operations for the broader mobility ecosystem [2].

Analysts have noted the potential implications of this partnership for Avis Budget Group's stock performance. While the company's Q2 2025 results exceeded Wall Street's estimates, with revenue of $3.04 billion and impressive gains from smarter fleet management and new tech initiatives, the stock's valuation has been a topic of discussion [3].

The average price target for Avis Budget Group suggests a potential downside of 40.34%, while GuruFocus estimates indicate a slight overvaluation of the stock. This discrepancy highlights the potential risks and uncertainties associated with the company's stock price, particularly given the ongoing advancements in autonomous vehicle technology and the competitive landscape in the mobility sector [3].

In conclusion, the partnership between Waymo and Avis Budget Group is a significant development in the autonomous vehicle and mobility sectors. While the potential benefits are clear, investors should be mindful of the risks and uncertainties associated with the company's stock valuation.

References:
[1] https://techcrunch.com/2025/07/28/waymo-taps-avis-to-manage-robotaxi-fleet-in-dallas/
[2] https://www.globenewswire.com/news-release/2025/07/29/3123245/14887/en/Avis-Budget-Group-Announces-Multi-Year-Strategic-Partnership-with-Waymo.html
[3] https://finimize.com/content/avis-budget-drives-past-expectations-with-tech-and-partnerships