Uber Technologies (UBER) shares surged 5.8% to $74.48 in Monday afternoon trading, adding $4.08, as investors reacted favorably to a series of strategic moves including a high-profile robotaxi partnership and continued expansion of its delivery and super-app ambitions. The broader market provided a tailwind, with the SPDR S&P 500 ETF (SPY) gaining 0.4%, while ride-hailing rival Lyft (LYFT) rose 7.2% and delivery platform DoorDash (DASH) added 4.2%.
More than 14 million shares of Uber changed hands on the NYSE as the company outlined its latest autonomous vehicle initiative. Uber, Israeli autonomous driving startup Autobrains, and chipmaker Nvidia (NVDA) announced a joint robotaxi rollout in Munich, Germany, using Nvidia's Drive Hyperion platform. The program is described as “OEM-agnostic,” meaning it can operate on vehicles from multiple automakers rather than being tied to a single brand. The first deployments are planned for Munich pending regulatory approval.
This move underscores Uber's strategy to integrate autonomous vehicles into its network without becoming a full-stack self-driving technology company. The central question for investors remains whether Uber can effectively serve as the marketplace for autonomous rides without bearing the heavy capital costs of vehicles, sensors, and software. Sarfraz Maredia, Uber's head of global autonomous mobility and delivery, emphasized that “the challenge is not just building autonomous vehicles” but bringing them onto a commercial network capable of serving riders at scale. Autobrains CEO Igal Raichelgauz noted that autonomous driving systems must “make decisions under uncertainty,” while Nvidia automotive executive Rishi Dhall said the group aims for “safe, scalable, software-defined autonomous ride-hailing fleets.” Nvidia is pushing Level 4 autonomy, where vehicles handle all driving tasks in specific areas or routes without a human driver. Uber plans to deploy several fleets using Nvidia's Drive Hyperion technology on its ride-hailing network this year, with the Munich Autobrains program joining later.
On the delivery front, Uber faces fresh headwinds in Europe. Reuters, citing the Financial Times, reported that Prosus, a major technology investor, may increase its stake in Delivery Hero, potentially blocking Uber's bid to acquire the German food-delivery company. Prosus currently holds 16.83% of Delivery Hero. The report adds to a complex landscape where DoorDash has also been linked to Delivery Hero assets, with investors reportedly seeking over 40 euros per share for the German company—a price higher than Uber's earlier rumored offer.
Uber is simultaneously strengthening its position in the Middle East. The company acquired a 12.5% stake in Careem Technologies from UAE telecom operator e& for $100 million in cash. Following the transaction, e& will retain a 37.53% stake, subject to regulatory approvals and standard closing conditions. This investment signals Uber's commitment to expanding its super-app ecosystem beyond ride-hailing and delivery.
The company enters these negotiations on solid financial footing. In May, Uber reported first-quarter results showing trips rose 20% year-over-year to 3.6 billion, gross bookings increased 25% to $53.7 billion, and adjusted EBITDA climbed 33% to $2.5 billion. These metrics highlight the underlying strength of Uber's core business even as it pursues growth in autonomous vehicles and international delivery.
However, significant risks remain. The Munich robotaxi program requires regulatory approval, and the profitability of autonomous ride-hailing at scale is unproven. If Prosus moves to block Uber's Delivery Hero bid, the company may need to raise its offer, face a longer timeline, or accept a less favorable outcome than equity markets currently anticipate. European regulators are also scrutinizing food-delivery mergers closely, adding another layer of uncertainty.
