Waymo applies for NYC permit to test autonomous vehicles, causing Uber's stock to decline
From Nasdaq: 2025-06-20 10:28:00
Alphabet’s Waymo applies for a permit to test autonomous vehicles in New York City, causing Uber’s stock to decline amid fears of future competition in the ride-hailing market. Waymo plans to have trained specialists in the vehicles to supervise operations and collect data starting next month.
Waymo faces regulatory challenges in New York, where laws do not currently allow for fully autonomous commercial ride-hailing services. Despite concerns, Uber and Lyft have successfully navigated complex regulations in the city. Lyft’s stock also fell on worries about future competition in the ride-hailing industry.
Uber aims to establish a strong presence in the robotaxi market through strategic partnerships, including one with Waymo. The company sold its self-driving division in 2020 but remains focused on becoming a comprehensive ride-hailing super app. Uber’s vast network gives it an advantage in scaling autonomous services.
Lyft is also positioning itself as a major player in the growing autonomous vehicle market, reflecting intense competition in the industry. The global robotaxi market is projected to reach $45.7 billion by 2030, with a compound annual growth rate of 91.8% from 2025 to 2034.
Uber’s stock has outperformed its industry in the past six months, gaining 34.9%. However, the company appears overvalued based on its price/earnings ratio, trading at a higher multiple than its industry average. Analysts have raised their estimates for Uber’s earnings per share in 2025 and 2026.
Uber holds a Zacks Rank #2 (Buy) currently, indicating positive sentiment among analysts. The company’s strategic positioning in the autonomous vehicle market and strong earnings growth potential make it an attractive investment opportunity. Global semiconductor manufacturing is expected to grow significantly in the coming years, presenting opportunities for tech companies like Uber.
Read more at Nasdaq: Waymo Applies for NYC Testing Permit: Is it a Risk for Uber?