Lyft (NASDAQ: LYFT) stock surged over 13% on Sept. 17 after announcing a partnership with Waymo to bring autonomous ride-hailing to Nashville in 2026. This marks Lyft’s third-largest single-day gain of the year.

The partnership with Waymo, a leader in autonomous technology, validates Lyft’s position in the robotaxi market. Waymo sees value in Lyft’s customer base and aims to foster competition with Uber.

Analysts raised Lyft’s price targets by 38% following the news, but the MarketBeat consensus target suggests a 17% downside. Competition from Uber, Waymo, Tesla, and Amazon’s Zoox poses challenges for Lyft’s long-term growth.

Despite the positive impact of the Waymo partnership, Lyft’s competitive position remains precarious. The company missed out on diversifying into food delivery and faces stiff competition in the ride-hailing market. Analysts see downside potential in Lyft’s shares despite the recent rally.

Read more at Nasdaq: Lyft Surges on Waymo Robotaxi Deal: Is the Stock a Buy?