Uber Doubles Down on Robotaxis with Amazon’s (AMZN) Zoox in Bold Driverless Deal

Uber Technologies UBER +1.70% ▲ is partnering with Amazon’s AMZN -1.27% ▼ autonomous-vehicle subsidiary, Zoox, to bring fully driverless robotaxis to its ride-hailing app. The multiyear deal launches in Las Vegas this summer, with expansion to Los Angeles expected by mid-2027. This marks Zoox’s first partnership with a third-party ride-hailing platform.

Claim 70% Off TipRanks Premium

• Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions

• Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Uber Collaboration Expands Amazon’s Robotaxi Access

Announced on March 11, the partnership integrates Zoox’s purpose-built, bidirectional robotaxis directly into Uber’s app. Zoox will continue operating its standalone service. Acquired by Amazon for $1.3 billion in 2020, the company has logged over one million autonomous miles, with active services in Las Vegas and testing underway in Dallas and Phoenix.

Uber CEO Dara Khosrowshahi highlighted the vehicle’s purpose-built design as a key differentiator for rider experience. The approach aligns with Uber’s asset-light AV strategy under Uber Autonomous Solutions. Across its 25 AV partners, including Waymo, the robotaxi unit of Alphabet GOOGL +0.20% ▲ , May Mobility, and Baidu BIDU -1.59% ▼ , Uber avoids direct R&D costs, instead providing data tools, mapping support, and app integration, which Khosrowshahi said during the earnings call would boost vehicle utilization by 30%

Robotaxi Race Heats Up with Uber’s Strategic Alliance

According to TipRanks data, UBER shares rose 3.65% pre-market to $74.75 following the announcement, earning a Smart Score of 9 out of 10 and an “Outperform” rating, while AMZN traded largely flat at $214.11, down 0.10%. Retail traders saw the deal as favorable for both stocks, as faster commercialization and affordable driverless rides could reshape the $1 trillion autonomous vehicle market.

The partnership also intensifies Uber’s competition with Waymo, which already operates driverless services across multiple U.S. cities. For Uber, the Zoox deal adds another commercialization lever as it pushes toward its broader goal of deploying autonomous vehicles across 15 cities by the end of 2026. “We are delighted to collaborate with Uber, whose vision for transforming mobility aligns with ours,” said Aicha Evans, CEO of Zoox.

What Tech Stocks are a Strong Buy Now?

TipRanks rates both AMZN and UBER as “Strong Buy,” with 12-month average price targets of $105.59 (+41% upside) and $279.88 (+30.88% upside), respectively. For those interested in buying other publicly traded tech stocks, TipRanks Stock Comparison Center shows ‘Strong Buy’ ratings and a high upside potential for Microsoft MSFT -0.69% ▼ and Nvidia NVDA +0.03% ▲ , according to Wall Street analysts.

Disclaimer & DisclosureReport an Issue