Uber Benefits from Autonomous Driving Advancements, Tesla Could Undercut Ride-Hailing Companies

Gary Black, a finance expert with experience at Bloomberg, believes that Uber will benefit the most from the development of autonomous driving technology. He thinks that Uber could lower the price of ridership by half and expand its total addressable market. Black also notes that Tesla's Robotaxi efforts could allow it to undercut other ride-hailing competitors if it achieves 99.99% autonomous driving efficacy.

Wall Street is increasingly optimistic about Uber Technologies' (UBER) expansion in autonomous driving, driven by strategic partnerships and the potential for significant cost savings. Analysts are bullish on Uber stock, with a price target of $96.12, and predict substantial growth in the space [1].

Uber's stock has surged around 60% from the start of this year, reaching new highs, driven by its partnership model and recent developments in the autonomous vehicle (AV) sector. The company is focusing on partnerships with AV leaders like Alphabet's Waymo, which has expanded its operations into new markets like Philadelphia [1].

Gary Black, a finance expert with experience at Bloomberg, believes that Uber will benefit the most from the development of autonomous driving technology. Black thinks that Uber could lower the price of ridership by half and expand its total addressable market. He also notes that Tesla's Robotaxi efforts could allow it to undercut other ride-hailing competitors if it achieves 99.99% autonomous driving efficacy [2].

Uber's recent partnership with Baidu (BIDU) further underscores its leadership in autonomous technology and scaling capabilities. Baidu's Apollo Go vehicles, which have completed over 11 million rides, will be available to Uber users in Asia and the Middle East later this year. This partnership highlights Uber's ability to leverage proven autonomous vehicle technology from global leaders [3].

Despite the positive outlook, Uber faces challenges. The company is currently facing a lawsuit from the US Federal Trade Commission (FTC) alleging deceptive billing practices. However, the potential tax break for drivers could mitigate some of these challenges by making the platform more attractive to drivers [1].

In conclusion, Wall Street is optimistic about Uber's autonomous driving expansion, driven by its partnerships, strong booking growth, and potential tax benefits for drivers. The company's established platform and focus on partnerships make it a prime candidate for growth in this space.

References:
[1] https://www.ainvest.com/news/uber-technologies-set-benefit-autonomous-driving-expansion-analysts-predict-2507/
[2] https://www.benzinga.com/markets/tech/25/07/46485120/gary-black-thinks-uber-benefits-most-as-autonomous-driving-technology-develops-says-tesla-could-undercut-other-ride-hailing-companies-by-mastering-unsupervised-autonomy
[3] https://www.ainvest.com/news/baidu-uber-partnership-highlights-company-autonomous-technology-leadership-2507/