Uber Technologies has struck another partnership with an autonomous vehicle developer — ahead of a buzzy robotaxi reveal event next week for Tesla that has weighed on Uber's stock.
Uber said Thursday it has partnered with Avride to offer the company's sidewalk automated robots for food delivery on Uber Eats and autonomous vehicles for ride-hailing. The deal comes weeks after Uber announced a similar partnership with AV developer Waymo and Cruise.
On the stock market today, Uber stock closed a fraction higher at 72.95. The trading action Thursday broke a streak of six straight trading days in the red for Uber. Shares are hovering near Uber's 21-day moving average.
Uber-Avride Partnership Starting With Food Delivery
The partnership between Avride and Uber will begin with automated robots that can deliver food via sidewalks in Austin in the "coming weeks," according to Uber's announcement. Food delivery will expand to Dallas and Jersey City, N.J., later this year.
The companies expect to have autonomous ride-hail vehicles from Avride on the Uber app in Dallas sometime next year.
Avride is the former Yandex Self-Driving Group. The company is based in Austin and rebranded earlier this year after its Netherlands-based parent company (now called the Nebius Group) divested itself of all business in Russia through a $5.2 billion deal.
Avride's food delivery robot has made more than 200,000 deliveries across five counties, according to its website. Its autonomous cars are in testing on public roads, according to the Uber and Avride joint announcement.
Uber Stock: Tesla Robotaxi Overhang
While Uber once had its own division focused on developing autonomous vehicles, it is now pitching itself as a partner to AV developers. The firm has been rapidly striking deals.
Last month, Uber announced an expanded partnership with Waymo, Google's self-driving car division. Uber already offers Waymo vehicles in Phoenix and will expand that arrangement to Austin and Atlanta starting next year. Uber also struck a recent deal with Chinese AV company WeRide to offer autonomous rides in the United Arab Emirates.
In August, Uber announced a partnership with General Motors-backed Cruise that will allow Uber riders to hail AVs in undisclosed markets starting next year. A week later, the ride-hailer announced a strategic partnership with the startup Wayve, which makes AI-powered software for autonomous vehicles.
Uber's AV maneuvering comes as Tesla is hyping an Oct. 10 event where analysts expect it will detail plans for a robotaxi-type service. Elon Musk's stated vision of offering an Airbnb-meets-Uber style service has weighed on shares of Uber and Lyft since Tesla teased the event in April. Even with the service likely far from launching, some investors fear that Tesla could offer a new and formidable competitor over the long term.
Uber stock has gained 18% this year but is still sitting below highs reached in early March. Shares have formed a consolidation pattern with an 82.14 buy point, according to IBD MarketSurge.
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