SAN FRANCISCO & AUSTIN, Texas – Uber Technologies, Inc. (NYSE: NYSE:) and autonomous vehicle startup Avride have entered into a strategic partnership to bring delivery robots and autonomous vehicles to Uber and Uber Eats services. The initiative will begin deploying sidewalk robots for Uber Eats in Austin in the coming weeks. The service will expand to Dallas and Jersey City, New Jersey later this year. The collaboration also envisions the launch of an autonomous ride-sharing service in Dallas the following year.
Consumers using Uber Eats or the Uber app will soon have the option to have their deliveries or rides carried out by Avride’s delivery robots or autonomous vehicles, when the service is available. Avride focuses on both autonomous cars and delivery robots. Its delivery robots are already making commercial deliveries in the US and South Korea, while its autonomous vehicles are currently completing public road tests.
Dmitry Polishchuk, CEO of Avride, expressed excitement about the partnership with Uber, highlighting Avride’s planned expansion of Avride’s fleet of robots within Uber Eats to hundreds by 2025, as well as the subsequent launch of their Robotaxi service. Dara Khosrowshahi, CEO of Uber, also commented on the potential 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 has revolutionized personal transportation, continues to innovate in urban mobility. Avride, on the other hand, is an emerging name in the autonomous vehicle industry with a strong presence in Austin and international R&D centers. The partnership marks a significant step in the development of delivery and transportation services using cutting-edge autonomous technology.
The information reported here is based on a press release.
In other recent news, Uber Technologies has been the focus of several key developments. Uber’s robust competitive advantage and consistent underlying performance have led Wolfe Research to reiterate an Outperform rating with a stable price target of $95.00. TD Cowen also maintained a Buy rating on Uber shares, highlighting the potential impact of autonomous vehicle (AV) technology on Uber’s business model.
Uber’s strategic pushes into new businesses and geographies are seen as driving growth, with the company’s focus on improving profitability and its share buyback program also highlighted. Uber has partnered with Chinese company WeRide to launch robotaxis in the UAE in 2024, reflecting the company’s commitment to integrating autonomous vehicles into its service offering.
Additionally, Uber has entered into a delivery partnership with Darden Restaurants, scheduled to begin at select Olive Garden locations in late 2024. Analysts at Oppenheimer and KeyBanc both increased their price targets on Uber, citing growth prospects in delivery services and operational efficiency. BTIG maintained its Buy rating on Uber, highlighting the company’s consistent growth in ride-sharing and delivery. These recent developments underscore Uber’s continued commitment to innovation and expansion.
InvestingPro Insights
Uber’s strategic partnership with Avride fits well with the company’s innovative approach to urban mobility and its strong market position. According to InvestingPro data, Uber has a sizable 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 add to Uber’s already impressive revenue, which stood at $40.06 billion for the trailing twelve months through the second quarter of 2023.
InvestingPro tips highlight Uber’s financial strength and growth potential. The company’s net income is expected to grow this year, and it was profitable in the last twelve months. This profitability trend is promising for the implementation of new technologies such as autonomous vehicles, which often require significant upfront investments.
Additionally, Uber’s strong return last year, with a one-year total return of 63.72%, indicates investor confidence in the company’s strategic direction. Partnering with Avride could further reinforce this positive sentiment and potentially drive future growth.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Uber that provide a deeper understanding of the company’s financial health and market position.
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