Shares in ride-hailing firm Uber Technologies (UBER) edged up today as it sealed a multi-million-dollar deal to set up a new innovation center in Turkey.
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Fourth Site
Uber, which reports Q3 earnings next week, said it was investing $200 million over five years in the new software and technology center in Istanbul, making it the company’s fourth major hub outside of the U.S. It has similar sites in Brazil, the Netherlands and India.
It is expected that the investment will be spent on areas such as developing AI in the form of ride-matching and pricing algorithms, mapping and routing. According to a report in Meyka, it will also invest in back-end infrastructure for delivery and logistics as well as hiring software engineers, data scientists and building laboratories.
For example, Uber has previously hailed development work in India on its Uber Bus and micromobility products.
New Focus
It marks Uber out as no longer just a ride-hailing firm but one focused on delivery, freight and mobility technologies.
Uber already has a presence in Turkey with the acquisition earlier this year of an 85% controlling stake in Trendyol GO, a leading online meal and grocery delivery service for approximately $700 million. The aim was to enhance Uber’s growth and strengthen its delivery sector presence in Turkey benefiting consumers, couriers, and small businesses.
The move today also marks Uber’s continued global expansion. Earlier this week, it revealed that it was joining forces with Chinese autonomous driving technology firm WeRide (WRD) to launch autonomous robotaxi passenger services in Riyadh. This marks the first time autonomous vehicles have become available to the public on the Uber platform in Saudi Arabia.
Is UBER a Good Stock to Buy Now?
On TipRanks, UBER has a Strong Buy consensus based on 27 Buy and 4 Hold ratings. Its highest price target is $150. UBER stock’s consensus price target is $110.61, implying a 14.63% upside.
