Uber Technologies Inc. rolled out its driverless Waymo rides in Atlanta on Tuesday, making it the second partnership with the autonomous vehicle company since its Austin launch. The service is expected to cover 65 square miles and run from downtown through Buckhead to Capitol View. The company plans to extend the range as more Waymo self-driving cars arrive on the platform.
Earlier this year, Uber added an option in their rides to allow users to show interest in autonomous rides. Even after choosing driverless rides, users are allowed to switch their options at any point before the trip begins. Uber and Waymo first teamed up in Phoenix in 2023 to offer both passenger trips and deliveries. In Phoenix, San Francisco, and Los Angeles, Waymo also runs a direct-to-consumer app.
However, in Austin and now Atlanta, Uber is the exclusive way to summon Waymo’s all-electric SUVs. Outside the U.S., Uber also partners with China’s WeRide Inc. in Abu Dhabi, helping it reach an annual pace of about 1.5 million driverless trips for both riders and deliveries. Riders there have given Waymo trips an average score of 4.9 out of 5 stars, reflecting smooth pick-ups and safe drop-offs according to user reviews.
Uber is testing its potential with the Waymo partnership
Shares of Uber rose on Tuesday after the Waymo robotaxi service was launched in Atlanta. For Uber, the success of this Atlanta launch could shift investor opinion. The company has forged more than a dozen autonomous vehicle alliances around the globe. Uber also said its popular app and its skill at matching riders with cars will bring in enough customers and money to cover the cost of self-driving cars.
Waymo currently has about 1,500 self-driving cars, but it is expected that it will take time before the figures rival those of human drivers. Some analysts worry that if Waymo does not expand beyond Austin and Atlanta, Uber’s ambitions in the autonomous space could stall. Presently, around 100 Waymo vehicles are active on Uber in Austin. The companies expect to scale up to several hundred robotaxis serving both Austin and Atlanta over the next few years.
This robotaxis competition is rising in Atlanta. Lyft Inc. plans to start its autonomous service, with safety operators onboard, in partnership with Toyota-backed May Mobility Inc. as soon as this summer. Amazon’s Zoox Inc. has also been testing driverless vehicles around downtown streets. Tesla also opened its self-driving taxi service in Austin on Sunday, charging a flat fee of $4.20 per trip. Each ride included an employee onboard for safety.
Promoted heavily by CEO Elon Musk, the service is limited for now but marks Tesla’s entry into robotaxi hailing. Tesla’s stock jumped on the launch, climbing as much as 11% in Monday trading before closing up 8% at $348.68, trimming its losses for the year to just under 7%. Moreover, the launch has added $19 billion to Musk’s net worth, making him top the billionaires list.