Uber began offering Waymo robotaxi services in Atlanta

On Tuesday, Uber Technologies Inc. rolled out driverless Waymo rides in Atlanta, marking its second city partnership with the autonomous vehicle maker after launching in Austin.

The service will cover roughly 65 square miles (168 square kilometers) and run from downtown through Buckhead to Capitol View.

Uber plans to extend that range further as more of Waymo’s self-driving Jaguar I-PACE vehicles arrive on the platform.

Earlier this year, Uber added an option in its app so riders could flag their interest in an autonomous ride. Even after choosing driverless cars, passengers will still see a prompt and can switch to a human-driven vehicle at any point before their 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. B

ut 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 market potential amidst robotaxis competition

Shares of Uber Technologies rose 8% on Tuesday after the company launched its first Waymo robotaxi service in Atlanta.

For Uber, the success of this Atlanta launch could influence investor opinion. The company has forged more than a dozen autonomous-vehicle alliances around the globe.

Uber says 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 operates about 1,500 self-driving cars, but it will take time before that number rivals the pool of human drivers Uber can draw on in its biggest markets. Some analysts worry that if Waymo does not expand beyond Austin and Atlanta, Uber’s ambitions in the autonomous space could stall.

As of now, 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 own 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.

Meanwhile, rival Tesla opened its own 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.

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