Uber Stock Slides Nearly 5% After Report Says Alphabet’s Waymo Could Walk Away From Their Robotaxi Deal

• Waymo reportedly plans to launch its own robotaxi service in Austin and Atlanta when its agreement with Uber expires in January 2028.
• The partnership has reportedly been strained by competition, regulatory differences and disputes over service quality and safety.
• Uber has invested more than $10 billion in autonomous vehicle partnerships since exiting its self-driving unit in 2020, making any breakup a potential setback.

Shares of Uber Technologies Inc. (UBER) fell nearly 5% on Friday after a report said Alphabet Inc.’s (GOOGL) Waymo is exploring options to end its robotaxi partnership with the ride-hailing company.

The move comes as relations between the two companies have deteriorated amid growing competition and disagreements over the future of the robotaxi market.

GOOGL shares ended Friday's regular session up 0.58%. In after-hours trading, UBER stock continued to edge lower, slipping another 0.01%, while GOOGL gained an additional 0.06%.

Waymo Reportedly Eyes Independent Expansion

Uber currently offers rides in autonomous Waymo vehicles through its app in Austin and Atlanta. Waymo has held internal discussions about ending its partnership with Uber and has already informed the ride-hailing company that it plans to enter both cities independently in January 2028, when the current agreement allows, the Financial Times reported, citing people familiar with the matter.

The partnership, which began in 2023, has reportedly become strained as the companies increasingly compete directly in some markets while lobbying for robotaxi regulations that favor their respective business models. According to the report, Waymo and Uber have also blamed each other for service quality and safety issues in the cities where they operate together.

A split between the companies is expected to dent Uber’s autonomous vehicle ambitions. The company has reportedly spent more than $10 billion over the past year through equity investments and robotaxi fleet agreements, following the sale of its in-house autonomous vehicle unit in 2020.

Growing Rift Over Robotaxis

Waymo has steadily expanded its robotaxi footprint, gaining market share in cities such as San Francisco. The companies first partnered in Phoenix in May 2023 before expanding the arrangement to Austin and Atlanta, where Waymo vehicles are available exclusively through the Uber app, and Uber manages the fleet with partner Avomo.

The relationship has continued to fray. Uber and Waymo ended their Phoenix partnership in June after the agreement expired, while disputes over service quality in Austin and Atlanta have continued.

Uber has also raised concerns about the partnership's financial terms and said Waymo vehicles can become unavailable during bad weather. Waymo said it has not ruled out a complete split.

UBER, GOOGL Stocks: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment for UBER improved to ‘bullish’ from ‘neutral’ in the past 24 hours, while message volume was ‘normal’ at the time of writing.

For GOOGL, retail sentiment on Stocktwits remained ‘extremely bullish,’ unchanged in the past 24 hours, while message volume was ‘high.’

UBER shares have fallen more than 18% year to date amid investor concerns that autonomous vehicle providers could erode the company’s market position. During the same period, GOOGL stock has gained nearly 3%.

Also See: This NVDA Partner’s Stock Jumps 7% — Why UBS Sees 38% Upside For Amkor Technology

For updates and corrections, email newsroom[at]stocktwits[dot]com.