Waymo, Alphabet’s (GOOGL) autonomous driving unit, delivered standout performance metrics for 2025, further cementing its position as the leading robotaxi operator in the U.S. While the results were clearly positive for GOOGL shareholders, they largely met expectations, given Alphabet’s multi-year investment and steady rollout of its autonomous vehicle strategy.
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Separately, CNBC reported last week that Waymo is preparing to raise approximately $15 billion next year at an implied valuation of around $110 billion. Although Waymo’s rapid ascent has the potential to reshape the ridesharing landscape over the long term, Uber Technologies, Inc. (UBER) — the current market leader — appears well-positioned to benefit from, rather than be disrupted by, the broader adoption of autonomous driving.
I remain bullish on both GOOGL and UBER, as I believe the recent market pullback — with Uber shares down roughly 12% over the past month — has created an attractive entry point at current valuation levels.
Waymo is Firing on All Cylinders
Earlier this month, Waymo reported that it had completed 14 million trips so far this year, more than triple the trips it mustered last year. Today, Waymo completes just over one million rides every month, and the company has guided to achieving one million rides every week in 2026. Making these milestones even more impressive, Waymo recorded a 10-fold reduction in crashes resulting in serious injury compared with human drivers.
The company continues to aggressively expand into new cities worldwide, setting the stage for continued growth next year as well. Waymo is expected to be available in major global cities such as London and Tokyo in 2026, which should help it emerge as the only global robotaxi operator. In the U.S., Waymo will be available soon in new cities such as Miami, Denver, Las Vegas, and Washington, DC.
Amid this stellar growth, Waymo is looking to raise capital, according to CNBC. The company is reportedly seeking to raise $15 billion at a valuation of approximately $110 billion. Waymo’s last funding round was completed in October 2024, when the company raised $5.6 billion at a $45 billion valuation. A capital raise of this scale should help Waymo’s aggressive expansion into new cities. For now, Waymo is the undisputed leader in the U.S. robotaxi market, with limited competition from Zoox, owned by Amazon.com, Inc. (AMZN), and Tesla Robotaxi (TSLA). According to Google CEO Sundar Pichai, Waymo will contribute positively to the company’s financial performance as soon as 2027.
Uber Can Benefit From Waymo’s Success
My bullish outlook on Uber is driven by the view that autonomous driving represents a meaningful tailwind for the company rather than an existential threat. Early evidence from Uber’s partnership with Waymo suggests that robotaxi fleet owners will ultimately rely on established ridesharing platforms to scale and monetize their services.
According to Waymo’s Q3 disclosures, in Austin and Atlanta — where Waymo offers fully driverless rides through the Uber app — completed ride volumes grew at more than twice the rate seen in markets where customers must use the standalone Waymo One app. These preliminary data suggest that Waymo’s performance is significantly stronger in cities where it has partnered with Uber.
Taken together, these results indicate the critical role Uber is likely to play as a distribution and monetization platform for autonomous-vehicle operators, reinforcing the long-term strategic value of its marketplace.
Uber is Well-Positioned To Be an AV Technology Leader
My bullish outlook on Uber is further reinforced by the company’s deliberate strategy to accelerate global adoption of autonomous driving through targeted technology investments and strategic partnerships. On October 28 this year, Uber announced a collaboration with Nvidia Corporation (NVDA) to build the world’s largest autonomous-vehicle network. The partnership seeks to create a comprehensive AV ecosystem that combines Nvidia’s Level 4 self-driving architecture with Uber’s expansive global platform.
This approach allows Uber to seamlessly onboard Level 4 autonomous vehicles from a broad range of automakers, including BYD Company (BYDDF) and Kia. As part of the initiative, Stellantis (STLA) has committed to supplying 5,000 Level 4 vehicles for Uber’s U.S. robotaxi operations, all equipped with Nvidia’s DriveOS and Drive AV software.
Beyond these partnerships, it is unrealistic to believe that a single $15 billion funding round could meaningfully displace Uber. The company has built a massive two-sided network of more than 9 million active drivers and facilitates over 3.5 billion trips each quarter. This unmatched scale positions Uber as the natural distribution and monetization partner for autonomous vehicle fleet operators worldwide.
Is Uber a Buy?
Based on the ratings of 29 Wall Street analysts, the average Uber price target is $117, which implies upside of almost 44% from the current market price.
I side with Wall Street analysts as I believe Uber is significantly undervalued on the back of a recent stock market downturn that has sent shares lower after hitting an all-time high of around $102.
At a forward P/E multiple of 12.58x, Uber is valued like a company with limited growth prospects, when in reality, the company is continuing to grow in double digits thanks to its dominant market position on a global scale (both for ridesharing and delivery).
What is the Price Target for GOOGL in 2026?
Alphabet, on the other hand, seems fairly valued based on analyst ratings. Based on the ratings of 25 Wall Street analysts, the average Alphabet price target is $326.41, implying a 5% upside from the current market price.
Waymo as UBER’s Compliment Rather Than a Disruptor
Waymo continues to make meaningful progress by expanding into new markets and securing additional strategic partnerships. According to a recent CNBC report, the company is also planning to raise capital at a valuation in excess of $110 billion. While Waymo’s momentum has sparked concerns about Uber’s long-term outlook, those fears appear misplaced.
As the world’s leading ridesharing platform, Uber is well-positioned to benefit from the broader adoption of autonomous vehicles rather than be disrupted by it. To reinforce this position, Uber has partnered with Nvidia to help build the world’s largest autonomous vehicle ecosystem. Far from being threatened by Waymo’s advances, Uber appears poised to benefit from Waymo’s continued expansion and potential exponential growth in the years ahead.