Uber Teams Up With China’s WeRide To Bring Autonomous Rides In UAE: Retail Feels Stock Could Get A Boost

Uber Technologies (UBER) and Chinese self-driving technology firm WeRide announced a strategic partnership under which WeRide’s autonomous vehicles will be brought onto the Uber platform, beginning in the United Arab Emirates.

The firms said the partnership will be first launched in Abu Dhabi where a dedicated number of WeRide vehicles will be made available to consumers using the Uber app. When a customer requests a ride on the Uber app, they may be presented with the option to have their trip fulfilled by a WeRide autonomous vehicle.

Uber CEO Dara Khosrowshahi said that it’s clear the future of mobility will be increasingly shared, electric, and autonomous.

WeRide already operates in the UAE and claims to have the largest robotaxi fleet in the country, where residents can access its services through the TXAI app. According to the firm, it was granted the UAE’s first and only national license for self-driving vehicles in July 2023, which enabled it to test and operate its autonomous vehicles on public roads.

The companies, however, clarified that they are not considering any launches in the United States or China.

Following the news, retail sentiment on Stocktwits continued to trend in the ‘bullish’ territory (69/100).

Earlier this month, Uber along with Alphabet Inc (GOOG) (GOOGL)-owned Waymo announced an extension of their partnership. Beginning in early 2025, Waymo and Uber will bring autonomous ride-hailing to Austin and Atlanta, only on the Uber app.

The ride-hailing firm will manage and dispatch a fleet of Waymo’s fully autonomous, all-electric Jaguar I-PACE vehicles. Uber said that riders who request an UberX, Uber Green, Uber Comfort, or Uber Comfort Electric may be matched with a Waymo for qualifying trips.

Meanwhile, KeyBanc analyst Justin Patterson has reportedly raised the price target on the stock to $90 from $80, while maintaining an ‘Overweight’ rating. According to the firm's latest Mobility & Delivery Survey, there is continued consumer intent to increase ride-sharing usage. KeyBanc believes this augurs well for Uber.

Uber shares have gained over 32% on a year-to-date basis, outperforming benchmark indices. The stock touched its lifetime high of about $82 in March and following two bouts of correction, appears to be headed back to that level.

Stocktwits users with a bullish view are enthusiastic about the stock’s potential with some believing it could soon hit the $80 mark.