Shares of Uber and Lyft fell Wednesday on a report Alphabet's Waymo plans to expand autonomous vehicle operations to 10 more cities in 2025. Google stock was down a fraction on Wednesday on the reports of Waymo's expansion plans.
Waymo already offers its ride-hail service in San Francisco, Los Angeles and Phoenix, with plans to expand to Austin and Atlanta this year. In December, Waymo unveiled plans to expand its robotaxi service to Miami. It's also testing its service in Japan.
Waymo will send autonomous vehicles for test operations in 10 new cities, including to Las Vegas and San Diego, The Verge reported. "So what we're looking for is places that are going to challenge our system and look very, very different," Nick Rose, product manager for Waymo's expansion efforts, told The Verge.
The new markets tests are with only 10 vehicles per city, said RBC Capital analyst Brad Erickson in a report.
Also, Waymo has mainly operated in sunny cities with favorable weather conditions.
On the stock market today, Uber stock dipped 2.3% to 66.50 while Lyft stock fell 3.9% to 13.40 in afternoon trading. Google stock was down 0.2% to near 195.
Waymo's expansion has been an overhang on Uber and Lyft as investors mull the impact of self-driving cars on the ride-hail market.
Whither Waymo-Uber Partnership?
On the other hand, Waymo and Uber have partnered in several markets. In Phoenix, Waymo's robotaxis are available through the Uber app, along with the Waymo One app. In 2025, Waymo's expansion into Austin and Atlanta will be with its vehicles exclusively available through the Uber app.
However, in Miami the robotaxi service will be available only through the Waymo One app.
Also, Google stock has advanced 3% in 2025. Uber stock has advanced 10% while Lyft is up 4%.
Further, Uber stock holds an IBD Composite Rating of 87 out of a best possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
