Shares of Uber Technologies Inc. traded lower during Thursday's session, closing down 0.7% at $70.50. The stock opened at $72.34, reached an intraday high of $72.60, and dipped to a low of $69.48, with trading volume nearing 20 million shares. The modest decline occurred amid a cautious market environment for technology stocks, as investors assess the tangible returns from artificial intelligence investments.
Strategic Moves in Autonomy and AI
Concurrently, Uber announced the commercial launch of a robotaxi service in downtown Abu Dhabi in partnership with autonomous vehicle firm WeRide. The service, described as the first of its kind in the city center, now covers approximately 70% of Abu Dhabi's core areas. Riders using UberX or Uber Comfort may be matched with a WeRide Robotaxi, which operates with a safety specialist onboard as part of a phased approach to fully driverless operations.
Separately, the company introduced a new AI feature called "Cart Assistant" within the Uber Eats app. The tool, currently in beta, allows users to generate grocery lists from text or images, considering item availability and promotions. Uber's Chief Technology Officer described it as an early step toward "agentic AI" that can perform tasks for users.
Broader Context and Analyst Outlook
The product announcements arrive as the ride-hailing sector faces scrutiny following a weak outlook from competitor Lyft. Analysts note Uber's continued efforts to diversify beyond its core business through autonomy partnerships and delivery enhancements. However, potential headwinds include regulatory hurdles, safety concerns in autonomous testing, and macroeconomic pressures affecting consumer spending.
On the financial front, Arete Research adjusted its price target on Uber downward to $120 from $125 while maintaining a buy rating. The company also confirmed a leadership transition, with CFO Prashanth Mahendra-Rajah stepping down on February 16, to be succeeded by Balaji Krishnamurthy.
