Ride-hailing firm Uber (UBER) has launched a new robotaxi service in Dallas through a partnership with Avride. Starting this week, some riders who request an UberX, Comfort, or Comfort Electric ride may be matched with a fully electric Hyundai (HYMLF) Ioniq 5 Avride robotaxi. The service currently covers a 9-square-mile area, including Downtown, Uptown, Turtle Creek, and Deep Ellum, with plans to expand into more parts of the city over time.
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Riders will be notified if they’re matched with a robotaxi and can choose to accept it or switch to a regular vehicle at no extra cost. For now, the robotaxis will still have a human safety operator behind the wheel to monitor the trip, but Uber and Avride plan to remove the human operator in future phases. Interestingly, riders can unlock the car and begin the ride using the regular Uber app. Dallas users can also increase their chances of being matched with a robotaxi by updating their ride preferences in the app’s settings.
This launch builds on Uber’s earlier work with Avride, which focused on autonomous delivery. Notably, Avride CEO Dmitry Polishchuk said the company has been working toward robotaxis from the start and is now expanding that technology into ridesharing. In addition, Uber’s head of autonomous operations, Sarfraz Maredia, said this is part of Uber’s plan to grow its network of electric and self-driving vehicles.
Is UBER Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on UBER stock based on 25 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average UBER price target of $115.96 per share implies 28.7% upside potential.
