TLDR
- Baidu’s fully driverless Apollo Go vehicles are now carrying paying Uber riders in Dubai
- Pony.ai agreed to deploy 2,000+ robotaxis across Europe through Uber’s platform
- UBER trades at around 15x trailing free cash flow with a P/E of 16.6
- Rosenblatt initiated coverage with a Buy rating and $100 price target
- Wall Street holds a Strong Buy consensus with an average target of $104.39
Uber launched fully driverless Baidu robotaxi rides in Dubai, marking a step forward in its autonomous vehicle strategy. The move adds Baidu to a growing list of AV partners operating through Uber’s platform in the same city.
Uber stock currently trades at $75.65, down 19% over the past year. Rosenblatt initiated coverage on September 1 with a Buy rating and a $100 price target, citing the current price as an attractive entry point.
The firm noted that autonomous vehicles account for less than 0.5% of trips today, and that the timeline for meaningful AV disruption is longer than markets initially expected. That gives Uber more runway than some investors feared.
Uber’s core argument is simple: self-driving companies may find it cheaper to plug into Uber’s existing rider base than build their own networks from scratch. Uber supplies the demand, partners supply the vehicles.
Under the Baidu deal, the partnership is expected to scale to thousands of Apollo Go vehicles across Uber’s global network. Separately, Pony.ai agreed this month to deploy more than 2,000 robotaxis across Europe through Uber’s app.
Nevada’s Transportation Authority recently approved commercial robotaxi permits for Uber, allowing up to 1,000 vehicles. Uber also launched autonomous rides in Zagreb, Croatia, alongside Pony.ai and Verne.
Risks Investors Should Watch
Management has committed more than $10 billion in multiyear autonomous vehicle deals. That is a major shift from Uber’s traditional asset-light model, where drivers provide the vehicles.
If spending rises faster than returns, it could squeeze cash available for buybacks and other uses. Investors will want to watch whether robotaxi expansion hurts or helps overall profitability.
Regulation is another factor. London’s planned driverless rollout has faced delays, showing that regulatory approvals can slow commercial expansion even when the technology is ready.
There is also a longer-term question about whether major AV developers might eventually bypass Uber and run their own apps in high-value markets.
What Wall Street Says
Rosenblatt’s analysis flags that AV penetration scenarios over the next several years still support reasonable returns. InvestingPro also flags the stock as undervalued.
Citizens reiterated a Market Outperform rating with a $100 price target, citing strong delivery and mobility performance alongside robotaxi expansion.
Uber trades at around 15x trailing free cash flow, which looks reasonable if the core marketplace stays healthy while autonomous trips add volume on top.
Wall Street holds a Strong Buy consensus on UBER based on 29 Buy ratings, 3 Holds, and zero Sells over the past three months. The average price target of $104.39 implies about 38% upside from current levels.
Uber also recently launched a live video streaming feature for teenage riders, allowing parents to monitor rides through the driver’s phone camera.
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