Lyft stock surged 13% after announcing a partnership with Waymo to launch an autonomous ride-hailing service in Nashville next year. Riders can hail driverless cars through the Waymo app initially, with Lyft’s platform integration planned for 2026. This collaboration is significant as Waymo has similar deals with Uber for robotaxis in Atlanta and Austin.

The robotaxi race is heating up, with Tesla testing in Austin and planning expansion to Nevada, Arizona, and Florida. Zoox, backed by Amazon, has limited testing in San Francisco and Las Vegas. Waymo leads the race, providing paid robotaxi rides in several cities. The market for traditional ride-hailing in the US is currently worth about $58 billion and could reach over $330 billion by 2030.

The Waymo partnership could help Lyft compete with Uber and Tesla without investing in autonomous technology development. However, Lyft still faces challenges in sustaining growth and profitability. Lyft stock is up 70% year-to-date compared to Uber’s 48% rise, but Uber’s market cap of $195 billion dwarfs Lyft’s $9 billion valuation.

Lyft and Waymo plan to roll out an autonomous ride-hailing service in Nashville next year. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre. Francisco Velasquez is a Reporter at Yahoo Finance and can be reached on LinkedIn, X, or via email at [email protected].

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