Waymo plans to expand its autonomous ride-hailing services to Miami. Following the announcement, shares of Uber Technologies Inc. (NYSE: UBER), as well as Lyft Inc. (NASDAQ: LYFT), are in the red.
Waymo, the self-driving car technology subsidiary of Alphabet Inc. (NASDAQ: GOOGL), is a subsidiary of Alphabet Inc. Waymo One, its autonomous ride-hailing app, is already available in many cities including San Francisco and Los Angeles.
Waymo and Moove have partnered to bring their autonomous ride-hailing service to Miami in 2026.
The public has not yet been able to purchase shares of Waymo.
The market for autonomous cars is growing rapidly
The announcement today is part of a larger push by Waymo to provide residents and tourists with a safer, more accessible mobility service throughout the United States.
Moove has agreed that it will manage the company’s fleet of self-driving vehicles, first in Phoenix, and then in Miami.
According to Ryan McNamara, vice president of operations for Waymo
Together, we will provide seamless, safe trips for riders and scale faster, more cost-effectively, over time. Safety will continue to be our top priority.
Statista predicts that the global market for autonomous cars will grow rapidly in the next few years.
The market is estimated to be worth more than $100 billion by 2024, compared to only $41 billion in the year 2000.
Could Waymo hurt Uber?
Uber Technologies could be in trouble if Waymo expands, as robotaxis and even self-driving cars at large could threaten its dominance.
Uber could find it difficult to maintain its growth rate, let alone increase it in the next few years.
Mark Mahaney, Evercore ISI’s head of Internet Research, is still convinced that such concerns are a bit overblown.
He believes that self-driving cars will be a boon to Uber’s stock.
Why? Uber will eventually have robotaxis as part of its fleet. Mahaney’s $120 price target for Uber shares indicates a potential 80% increase from here.
Uber is a financially stable company
Mark Mahaney isn’t the only one who’s bullish on Uber stock, despite recent developments. Donald Trump has committed to making regulation of self-driving vehicles a priority as the 47 th president of the United States.
The consensus rating for Uber Technologies remains “buy”.
Uber shares don’t pay a dividend at the moment, but they are still worth buying, especially after today’s sell-off. They have solid financials.
The ride-hailing giant has increased the number of monthly users on its platform to 161 millions in the recently concluded quarter.
Uber announced market-beating Q3 results and guided up to $1.88 Billion in adjusted EBITDA in its current quarter.
This post Waymo expands in Miami: Should Uber be worried? This post may be updated as new information unfolds
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