Investing.com - Evercore ISI reiterated an Outperform rating and $150.00 price target on Uber Inc. (NYSE:UBER) following the company's announcement of a partnership with Rivian to deploy autonomous vehicles on its platform. The target suggests significant upside from the current price of $75.56, with InvestingPro analysis indicating the stock is undervalued relative to its Fair Value.
Uber announced today a partnership with Rivian to deploy up to 50,000 fully autonomous robotaxis exclusively on the Uber platform. Under the agreement, Uber will invest up to $1.25 billion in Rivian through 2031, subject to autonomous vehicle performance milestones, with an initial $300 million investment at signing.
In phase one, Uber or its fleet partners will purchase 10,000 R2 robotaxis, with an option to expand by an additional 40,000 units by 2030. Initial deployment is expected in San Francisco and Miami in 2028, with a broader rollout across 25 global cities through 2031.
Rivian introduced its third-generation autonomous vehicle platform in 2025 alongside plans to launch the R2 in late 2026. The company plans to integrate the high-volume R2 into its Illinois facility, where production capacity is expected to increase from 150,000 to 215,000 units by 2026 following retooling and expansion.
Evercore ISI views Uber as the global leader in rideshare and one of the leaders in online delivery, with consistent premium top-line growth of over 20% in bookings growth. The firm expects the company to generate approximately $235 billion in 2026 bookings with 20% to 30% EBITDA and free cash flow growth.
In other recent news, Uber Technologies Inc. has made significant strides in the autonomous vehicle sector through several partnerships. The company announced a collaboration with Nvidia to introduce Level 4 robotaxis on its network in Los Angeles and San Francisco by the first half of 2027, with plans to expand to 28 global cities by 2028. This partnership involves Nvidia's DRIVE Hyperion AV platform, which will power the autonomous vehicles. Additionally, Uber has launched a robotaxi service with Motional in Las Vegas, offering rides in Motional IONIQ 5 robotaxis at no extra cost to riders.
Further developments include Uber's strategic partnership with Zoox, an Amazon-owned company, to deploy purpose-built autonomous vehicles on its network. This deployment is scheduled to begin in Las Vegas in the summer of 2026 and in Los Angeles by mid-2027. Analyst firms such as BTIG, BofA Securities, Bernstein SocGen Group, and Citizens have reiterated their positive ratings on Uber's stock, citing these autonomous vehicle partnerships as a key factor. BTIG maintains a Buy rating with a $100 price target, while BofA Securities has set a $103 price target. Bernstein and Citizens have both reiterated an Outperform rating, with Bernstein setting a $110 price target and Citizens a $100 price target. These developments highlight Uber's commitment to expanding its presence in the autonomous vehicle market.