Uber launches robotaxi service in Dallas with Avride partnership

DALLAS - Uber Technologies, Inc. (NYSE:UBER) has introduced robotaxi service in Dallas, allowing riders to be matched with autonomous vehicles operated by Avride, according to a press release statement issued Wednesday. The ride-hailing giant, which has seen its stock surge 45% year-to-date and maintains a "GREAT" financial health score according to InvestingPro, continues to expand its technological offerings while maintaining profitability.

The service covers a 9-square-mile area including Downtown, Uptown, Turtle Creek, and Deep Ellum neighborhoods, with plans for future expansion. Riders requesting UberX, Uber Comfort, or Uber Comfort Electric may be matched with an all-electric Hyundai Ioniq 5 robotaxi at no additional cost. This initiative aligns with Uber’s broader growth strategy, which has delivered 18.25% revenue growth over the past year as the company operates with a moderate debt level.

Customers will receive notifications when matched with an autonomous vehicle and can choose to accept or switch to a non-autonomous ride. The vehicles can be unlocked and trips started directly through the Uber app.

Initially, the robotaxis will operate with an on-board specialist monitoring from behind the wheel, with fully driverless operations planned for the future. Riders will have access to human support through the Uber app if needed.

"We’re excited to launch autonomous rides in Dallas with Avride, as we continue to build towards an increasingly electric and autonomous future," said Sarfraz Maredia, Global Head of Autonomous at Uber.

Dallas customers interested in increasing their chances of being matched with a robotaxi can opt in through the Ride Preferences section in their app settings.

The partnership expands on an existing autonomous delivery collaboration between Uber and Avride. The robotaxi service represents Avride’s entry into passenger mobility using its autonomous technology.

Avride is headquartered in Austin, Texas, with additional research and development centers globally. The company develops both autonomous cars and delivery robots using shared technology.

In other recent news, Uber Technologies Inc. reported a robust third-quarter performance, with key metrics surpassing expectations. The company experienced a 22% year-over-year trip growth, driven by a 17% increase in monthly active platform consumers, reaching 189 million. This strong performance led RBC Capital to raise its price target for Uber to $110.00, maintaining an Outperform rating, while Deutsche Bank reiterated its Buy rating based on the company’s accelerating trip growth and financial flexibility.

Additionally, S&P Global Ratings revised Uber’s outlook to positive from stable, citing the company’s leading platform and operational framework as factors supporting healthy growth in gross bookings. In a strategic move to enhance its delivery capabilities, Uber announced a partnership with Starship Technologies to deploy autonomous delivery robots, starting in Leeds, UK, with plans for expansion in Europe and the United States. Furthermore, Uber is reportedly in talks with Getir to potentially acquire key parts of the Turkish company’s delivery business, a deal that could be valued at up to $1 billion. These developments reflect Uber’s ongoing efforts to expand and innovate in the competitive ride-sharing and delivery market.

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