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Investing.com - Bernstein maintained its Outperform rating and $95.00 price target on Uber Technologies Inc . (NYSE:UBER), a prominent player in the Ground Transportation industry with a market capitalization of $189 billion, following reports of the company’s potential involvement in acquiring Pony.ai’s U.S. operations. According to InvestingPro data, the company’s stock has shown significant momentum, delivering a 52% return over the past six months.
The New York Times (NYSE:NYT) reported Monday that Uber is in discussions to back its founder and former CEO, Travis Kalanick, in efforts to acquire the U.S. operations of Chinese autonomous vehicle company Pony.ai. The talks are preliminary, with financial details undisclosed and Uber’s specific involvement not yet fully defined. Uber approaches these discussions from a position of financial strength, with InvestingPro analysis showing the company maintains a moderate debt level and has achieved profitability over the last twelve months.
Bernstein analyst Nikhil Devnani suggested the arrangement appears to be a potential equity investment from Uber and other investors, with Kalanick positioned to run the entity and partner with Uber’s network. The analyst noted that regulatory challenges making Chinese autonomous vehicles "untenable in the US" could be the catalyst for this "creative deal."
Pony.ai, considered one of China’s leading autonomous vehicle companies, recently became an Uber partner in the Middle East. The company currently operates a network of more than 270 robotaxis and plans to expand its fleet to 1,000 vehicles by year-end.
Bernstein had previously expressed optimism about Uber partnering with Pony.ai in Europe, the Middle East, and Africa, but had ruled out U.S. collaboration due to geopolitical factors.
In other recent news, Uber Technologies announced the expansion of its AI data services business, Uber AI Solutions, to 30 countries. This expansion offers a global digital task platform for AI-related tasks, supporting applications like generative AI and speech recognition. Additionally, Uber is launching a new data foundry to provide datasets for training large AI models. Meanwhile, New York City has finalized a new minimum-pay rule for rideshare drivers, mandating a 5% increase, which Uber and Lyft (NASDAQ:LYFT) initially opposed. The regulations aim to prevent companies from limiting driver access to their apps as a cost-control measure.
Citizens JMP reiterated its Market Perform rating for Uber, noting a slowdown in growth in San Francisco and expecting Waymo to continue launching its services independently. The firm highlighted Uber’s potential partnership with Wayve, anticipated to begin in London by Spring 2026, as a significant step in Uber’s autonomous vehicle strategy. Waymo remains a leader in autonomous vehicles, with BMO Capital emphasizing its technological edge despite uncertain long-term economic models for the industry. The report suggests that Waymo may not need long-term partnerships with companies like Uber, though fully autonomous vehicles are still years away from widespread operation.
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