Stock hits all-time high as alliances with Waymo and others fuel optimism despite competitive and legal pressures
Uber Technologies (UBER) is reaching new heights, with its stock up over 60% year-to-date and hitting an all-time high, as the rideshare giant leans into partnerships to navigate the rapidly evolving autonomous vehicle (AV) landscape.
Amid growing competition from Tesla, GM, and Amazon, Uber’s strategy focuses on collaboration rather than direct AV development. A key example is its partnership with Alphabet’s Waymo, which announced an expansion into Philadelphia on Monday. Uber shares rose on the news, and Bank of America followed up by raising its price target from $97 to $115.
“[Uber] is 100% focused on the partnership model,” said BofA analyst Justin Post. “That seems to be part of the multiple expansion for the stock.”
Operationally, Uber continues to show strength. According to Bloomberg Second Measure data, overall bookings rose 1.4% in Q2, with ride-hailing and delivery segments growing 1.5% and 0.9%, respectively. Prices per ride also climbed 8.4% year-over-year.
Uber may also benefit from President Trump’s proposed “One Big Beautiful Bill,” which includes a “no tax on tips” provision for independent contractors. BofA estimates this could boost driver pay by as much as 2.5%, improving retention and service levels.
One potential headwind: Uber is facing an FTC lawsuit alleging deceptive billing practices tied to its Uber One subscription program.
Still, growth prospects remain bright. Nigerian AV fleet partner Moove, backed by Uber, is reportedly raising $1.2 billion to finance AV deployment alongside Waymo. Analysts believe further integration between Waymo and Uber—already expanding into Austin and Atlanta—could be a key growth lever.
“It’s a lot of individual markets right now,” said Post, “but success with AV partners is what’s key for the next six to 12 months.”
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