Uber Technologies Inc. has announced a significant expansion of its partnership with Alphabet Inc.’s Waymo, bringing autonomous rides to Austin and Atlanta. Starting early next year, Uber will exclusively operate Waymo’s all-electric Jaguar I-PACE vehicles in these cities. This move marks a notable advancement in Uber’s strategy to integrate autonomous vehicles into its rideshare platform.
Under the new agreement, Uber will manage and dispatch Waymo’s fleet, handling vehicle maintenance and repair services. Meanwhile, Waymo will focus on the testing and operation of its autonomous driving technology, known as Waymo Driver, and will provide roadside assistance and additional rider support. The partnership anticipates expanding the fleet to hundreds of vehicles over time.
This collaboration deepens the relationship between Uber and Waymo, reflecting Uber’s broader strategy to become a key player in the autonomous vehicle market. This is a strategic shift from Uber’s previous efforts to develop self-driving technology in-house, which proved costly and complex.
Following the announcement, Uber’s stock rose 6.5% to $72.48, while Alphabet’s shares increased by 1.8% to $157.46. The partnership, which began with rides in Phoenix, now includes new collaborations with General Motors Co.’s Cruise LLC and BYD Co., along with a recent investment in the self-driving software firm Wayve Technologies Ltd., backed by SoftBank Group Corp.
Jefferies analysts noted that this move should bolster investor confidence in Uber’s approach to integrating autonomous vehicles into its platform, rather than viewing them as competition. Waymo has recently surpassed 100,000 weekly paid rides across Phoenix, San Francisco, and Los Angeles, showcasing the growing acceptance of its autonomous services.
Uber’s CEO, Dara Khosrowshahi, emphasized that the integration of autonomous vehicles with Uber’s platform will enhance fleet utilization and scalability. During peak periods, Uber’s hybrid network will combine autonomous and manually operated vehicles, offering a comprehensive solution to meet varying demand.
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