Uber Stock Climbed on Robotaxi Hopes. But It Doesn't Own the Autonomous Cars Driving Its Expansion.
Can a robotaxi platform that doesn't own the underlying robotaxi cars build a lasting edge?
Overview
Shares of ride-hailing giant Uber Technologies (NYSE: UBER) have rebounded recently as investors warm to the idea that robotaxis could become a major new growth driver. Shares are up about 7% over the last month and 5% in the last week alone. At close to $76 as of this writing, though, the stock still sits about 25% below its 52-week high near $102.
The recent optimism toward the stock is easy to understand. What's harder to pin down, however, is what Uber actually owns in the autonomous race.
Details
Here is the part the robotaxi excitement tends to gloss over: Uber doesn't build the cars, doesn't write the self-driving software, and doesn't own the vehicles carrying its riders. Its plan is to be the app that books the trip, whoever's autonomous car shows up. That asset-light approach could be Uber's biggest advantage in autonomy -- or its biggest vulnerability, depending on how the next few years unfold.
Source
Originally published at www.fool.com.