Uber stock surged more than 7% in a single day, and investors are taking notice — with good reason. The major catalyst behind this rally? A game-changing expansion of Uber’s partnership with Waymo, Alphabet’s autonomous driving division, marking a pivotal moment in the race for dominance in the robo-taxi industry.
Why Uber Is Surging
On the day of the announcement, Uber shares jumped over 7.7%, driven by news that Waymo will launch its self-driving taxi service in Atlanta, with ride bookings available directly through the Uber app. This marks the second major U.S. city — after Austin, Texas — where Waymo’s autonomous vehicles are integrated into Uber’s platform.
This partnership positions Uber at the center of a transportation revolution, without having to build its own autonomous vehicle technology from scratch — a risky and expensive endeavor the company previously abandoned. By teaming up with Waymo, Uber is staying relevant in the self-driving future rather than getting left behind.
Why It Matters: Robo-Taxi Wars Are Heating Up
Waymo and Tesla are considered the two front-runners in the U.S. robo-taxi race. Tesla recently launched its own robo-taxi service in Austin, and its stock also saw a boost from the news. But unlike Tesla, which has faced criticism over traffic violations and erratic autonomous driving behavior, Waymo vehicles have earned stellar reviews — averaging 4.9 stars on Uber.
Perhaps more importantly for riders, Waymo-powered Uber trips don’t come with any extra fees, and since there’s no human driver, no tipping is required. That makes the service not just futuristic, but also practical and potentially more affordable than traditional Uber rides.
Could This Make Uber Obsolete… or Stronger?
Initially, some investors feared that Waymo might one day replace Uber altogether by launching its own consumer app and cutting out the middleman. However, Uber’s proactive move to partner instead of compete suggests a smart pivot: leverage Waymo’s technology while continuing to dominate on the customer-facing side with its massive user base and well-established app.
In short, Uber is positioning itself as the go-to platform for mobility — whether the driver is human or AI.
Uber’s Financials Back the Hype
Beyond the Waymo deal, Uber’s fundamentals have been trending upward:
- PE Ratio: A relatively low 16.01, suggesting the stock is still fairly valued despite rapid growth.
- Stock Performance:
- Up ~45% year-to-date
- Up ~30% over the past year
- Up 209% over the past five years
- Q1 2025 Earnings:
- Revenue up 13.84% YoY
- Net income up 371%
- EPS up 359%
- Net profit margin up 339%
Uber also beat earnings expectations by over 50%, although it slightly missed on revenue by less than 1%.
Institutional and Insider Sentiment
Hedge funds and insiders are bullish:
- 77% hedge fund buy rating
- 100% insider buying activity in June 2025
- 81.8% of analysts rate the stock a “Buy” with 0% recommending a sell
Uber also scores a healthy PEG ratio of 1.08, indicating its valuation is in line with its expected growth rate — a promising sign for long-term investors.
Company Culture & Leadership
Uber’s internal reviews are solid:
- 3.8/5 stars overall from employees
- 69% would recommend working at Uber
- 75% approve of the CEO’s leadership
Compared to rival Tesla, which has more mixed internal reviews, Uber appears to be a more stable and well-regarded workplace.
The Road Ahead
While this Waymo partnership is a major win, the real test will be in execution. Will Waymo continue to integrate with Uber long-term, or eventually go solo with its own app? That remains to be seen.
But in the short term, Uber’s strategy is working. By leaning into innovation through strategic partnerships instead of solo R&D, Uber is positioning itself to thrive in the AI-driven future of mobility.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before investing.