Uber stock pushed higher Thursday after the company announced a robotaxi partnership with Volkswagen Group of America. Growing investor confidence in Uber's autonomous vehicle strategy has helped the company's shares outperform a down market this year.
Uber said in a news release that it has formed a strategic partnership with Volkswagen to deploy a fleet of thousands of autonomous versions of the company's all-electric "ID. Buzz" vans in several U.S. markets over the next decade. The partnership will start with Los Angeles in 2026, initially relying on human operators to guide the technology. Volkswagen's MOIA autonomous mobility division will provide the operating platform for the autonomous vehicles, according to the announcement.
The tie-up fits within a broader robotaxi strategy from Uber. Uber sold its robotaxi research division five years ago and is instead focused on offering its platform to other autonomous-vehicle developers. The stock slumped late last year on concerns that robotaxi providers like Alphabet's Waymo and Tesla could eventually operate competing services.
But Uber has partnered with Waymo in Phoenix and Austin, with an Atlanta partnership launching soon. Waymo also competes with Uber in San Francisco, Los Angeles and for its planned expansion to Miami. Tesla, meanwhile, said in its first quarter earnings release Tuesday that its "pilot" robotaxi launch is on track for Austin in June.
Uber also has a partnership with Avride, part of Nebius Group. Uber late last year launched autonomous vehicles on its app in Abu Dhabi with China-based AV developer WeRide. Plus, Uber is working with Nvidia to help develop autonomous driving technologies.
Uber Stock Is Up 25% This Year
Uber stock was up 3% at 76 in recent action on the stock market today.
Uber shares are ahead 25% overall this year, compared to a 7% year-to-date loss for the S&P 500. But Uber stock is still a ways off recovery to an all-time high of 87 that shares reached in October, before a 20% slump in the final three months of 2024.
Yet Uber has also shown some resilience amid a sell-off and volatility that followed President Donald Trump's April 2 "Liberation Day" tariff announcement. It has a Relative Strength rating of 84 out of a best-possible 99, according to IBD Stock Checkup. Shares also bounced up from Uber's 50-day moving average with Thursday's gains, a positive sign for investor support at Uber's current value.
Some analysts believe Uber will prove "countercyclical," meaning its stock can outperform a broader economic slowdown.
Uber will report first quarter earnings on May 7.
