Uber and Waymo Team Up: Stocks Rise on Autonomous Taxi Expansion Plan

Uber has announced an expansion of its collaboration with Alphabet's Waymo, targeting the launch of autonomous taxi services in Austin and Atlanta by early 2025. This partnership will enable Uber customers to hail Waymo's self-driving vehicles through the Uber app. In this arrangement, Uber will be responsible for managing the Waymo I-Pace fleet, covering cleaning, maintenance, and general operational services, while Waymo will handle vehicle testing and operations.

As the market for autonomous vehicles grows, Uber is under investor pressure to accelerate its developments in this sector, notably to compete with Tesla. While Tesla has yet to release autonomous vehicles, it plans to introduce robotaxis later this year. Waymo currently operates the United States' only commercial autonomous taxi service, Waymo One, offering over 100,000 paid rides per week with a fleet of about 700 self-driving cars.

Uber CEO Dara Khosrowshahi has expressed optimism about the partnership, citing the successful autonomous travel services Waymo has already provided for tens of thousands of passengers in Phoenix. Similarly, Waymo Co-CEO Tekedra Mawakana highlighted the positive feedback from Waymo One passengers and looked forward to delivering reliable and safe service in new cities with Uber.

Beyond Waymo, Uber has also collaborated with General Motors' Cruise and UK-based startup Wayve to hasten its progress in the autonomous vehicle arena. Despite not expecting substantial profits from autonomous driving in the next 5 to 10 years, Uber's continuous investment aims to solidify its strategic position.

In the larger context of the autonomous driving race, Waymo is making swift advances. It offers taxi services to the public in cities like San Francisco, Los Angeles, and Phoenix, with its vehicles having driven more than 22 million miles by June. A recent report claimed that Waymo's autonomous cars are safer than human-driven ones, further strengthening its market presence.

Analysts remain optimistic about Uber and Waymo's expansion in San Francisco, viewing it as a promising commercial strategy, with the potential tests in Atlanta and Austin also anticipated to positively influence market sentiment.