Uber Heats Up Robotaxi Battle Against Tesla, Waymo With May Mobility Deal
Uber Technologies Inc. (NYSE:UBER) will operate more self-driving taxis through its platform as the ride-hailing giant announced a partnership with May Mobility Inc.
What Happened: The company plans to deploy "thousands" of May Mobility autonomous vehicles in the multi-year partnership, with a pilot launch set for the latter part of 2025 in Arlington, Texas, according to an official statement released on Thursday.
Under the terms of the agreement, May Mobility will provide a fleet of American-made, hybrid-electric Toyota Motor Corp. (NYSE:TM) Sienna Autono-MaaS vehicles, which Uber will offer to customers as an option on all qualifying rides. The companies will expand operations to other cities in the U.S. in 2026.
"We are thrilled to be partnering with May Mobility to continue to scale the availability of autonomous vehicles across the United States," Uber CEO Dara Khosrowshahi said.
Why It Matters: The news comes in as Uber recently announced a partnership with Volkswagen Group (OTCPK: VWAGY) for autonomous vehicles starting in Los Angeles.
The autonomous driving segment has been picking up steam with Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Waymo having joined hands with Toyota to collaborate on AVs.
Elsewhere, Elon Musk's Tesla Inc. (NASDAQ:TSLA) is also gearing up to launch its robotaxi services in Austin in June this year, according to the billionaire. The company has already released a limited rollout in Austin and San Francisco for its employees.
The CEO of Tesla shared in the company's earnings call that it will deploy ‘10 to 20' Model Y robotaxis on the first day, which, among other factors, led TSLA Stock to surge in value after the earnings call.
Price Action: Uber currently trades for $80.89 on the NYSE, according to Benzinga Pro data.
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