Uber Technologies Inc. (NYSE: UBER), is the focus of attention today after partnering with WeRide in order to launch robotaxis service in Abu Dhabi.
WeRide, a startup for self-driving cars, has already received permits in several countries including Singapore, UAE and the United States. Its home country, China, is also one of them.
Uber-WeRide’s news came just a day before Waymo (the AV division of Google) announced its plans to expand into Miami. Uber’s stock rose by 2.0% following Friday’s announcement.
Uber to launch self-driving cars in UAE
Uber has plans to bring robotaxis in Abu Dhabi by 2025.
In the beginning, a driver will be present in order to ensure a “safe and reliable” experience for pedestrians and riders. The service is expected to go driverless by 2025.
Uber will offer autonomous vehicles to and from the Zayed International Airport, as well as between Yas Island and Saadiyat island.
Uber has responded to concerns recently raised that the autonomous vehicles expected to thrive under Trump’s administration may make it more difficult for the company to grow incrementally in coming years.
Uber’s stock is now well below its October high by over 20%.
Uber also has other partnerships with AV
Uber is committed to using self-driving vehicles for its own benefit.
The NYSE company has also signed agreements similar to this with a dozen self-driving firms.
Our autonomous strategy works. “AV partners understand the value Uber brings to their deployment plans,” Dara Khosrowshahi, its CEO told investors in a recent call.
Redburn Atlantic’s James Cordwell expects that autonomous vehicles will also “expand Uber’s addressable market,” as the company is well-positioned to become the “aggregator for autonomous vehicle providers.”
Uber’s stock has been given a price target of $90, which translates into a 40 percent increase from the current level.
Uber beats Street Estimates
Uber Technologies announced market-beating financial results for the third quarter of its business.
Uber’s monthly active user base grew by 13% annually to 161 millions, and the number of trips made on its platform jumped 17% from year to year to 2.9 billion.
The New York listed firm is expecting an adjusted EBITDA of between $1.78 and $1.88 billion for its current quarter – which is roughly the same as Street expectations.
Uber’s strong financials are another reason why it’s a good idea to buy its stock, even if the company doesn’t pay out a dividend.
Uber’s shares have risen by 13% since the beginning of 2018.
The post Uber launches robotaxis in Abu Dhabi to respond to Waymo may change as new information becomes available.
