SAN FRANCISCO & AUSTIN, Texas – Uber Technologies, Inc. (NYSE: NYSE:UBER) and autonomous vehicle startup Avride have entered into a strategic partnership to introduce delivery robots and autonomous vehicles to Uber and Uber Eats services. The initiative will begin with the deployment of sidewalk robots for Uber Eats in Austin in the upcoming weeks, with plans to extend the service to Dallas and Jersey City, New Jersey, later in the year. The collaboration will also see the launch of an autonomous ride-sharing service in Dallas in the following year.
Consumers using Uber Eats or the Uber app will soon have the option to choose their deliveries or rides to be completed by Avride’s delivery robots or autonomous vehicles, depending on the service's eligibility. Avride boasts a dual focus on autonomous cars and delivery robots, with its delivery robots already making commercial deliveries in the U.S. and South Korea, and its autonomous vehicles currently undergoing public road tests.
Dmitry Polishchuk, CEO of Avride, expressed enthusiasm about the partnership with Uber, highlighting the planned expansion of Avride's robot fleet within Uber Eats to hundreds by 2025 and the subsequent introduction of their robotaxi service. Dara Khosrowshahi, CEO of Uber, also commented on the promise of autonomous mobility and delivery for consumers and communities, and his excitement about bringing Avride's technology to a broader audience.
Uber, known for its ride-hailing platform that revolutionized personal transportation, continues to innovate in the field of urban mobility. Avride, on the other hand, is a rising name in the autonomous vehicle industry, with a strong presence in Austin and international R&D hubs. The partnership marks a significant step in the evolution of delivery and transportation services, leveraging the latest in autonomous technology.
The information reported here is based on a press release statement.
In other recent news, Uber Technologies has been the focus of several key developments. Uber's robust competitive edge and consistent fundamental performance have led Wolfe Research to reiterate an Outperform rating, with a steady price target of $95.00. TD Cowen has also maintained a Buy rating on Uber shares, emphasizing the potential impact of autonomous vehicle (AV) technology on Uber's business model.
Uber's strategic moves into new verticals and geographical areas are seen as growth drivers, with the company's focus on improving its profitability and share buyback program also highlighted. Uber has partnered with Chinese firm WeRide to launch robotaxis in the United Arab Emirates in 2024, reflecting the company's commitment to incorporate autonomous vehicles into its service offerings.
Moreover, Uber has formed a delivery partnership with Darden Restaurants (NYSE:DRI), set to begin at select Olive Garden locations in late 2024. Analysts at Oppenheimer and KeyBanc have both increased their price targets for Uber, citing growth prospects in delivery services and operational efficiency. BTIG maintained its Buy rating on Uber, emphasizing the company's consistent growth in the rideshare and delivery sectors. These recent developments underline Uber's ongoing commitment to innovation and expansion.
InvestingPro Insights
Uber's strategic partnership with Avride aligns well with the company's innovative approach to urban mobility and its strong market position. According to InvestingPro data, Uber boasts a substantial market capitalization of $153.1 billion, reflecting its dominant role in the ground transportation industry. This new venture into autonomous vehicles and delivery robots could potentially boost Uber's already impressive revenue, which stands at $40.06 billion for the last twelve months as of Q2 2023.
InvestingPro Tips highlight Uber's financial strength and growth potential. The company's net income is expected to grow this year, and it has been profitable over the last twelve months. This profitability trend bodes well for the implementation of new technologies like autonomous vehicles, which often require significant upfront investment.
Moreover, Uber's strong return over the last year, with a one-year price total return of 63.72%, suggests investor confidence in the company's strategic direction. The partnership with Avride could further enhance this positive sentiment, potentially driving future growth.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Uber, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.