Shares of the ride-hailing giant Uber (UBER +0.00%) are trading over 4.5% lower as of 10:49 a.m. ET today. The move came after rival Lyft announced a partnership with Waymo, a maker of autonomous vehicles.
The self-driving war heats up
Uber and Lyft's platforms are critical for companies that make autonomous vehicles and want to deploy them to the masses. This morning, Waymo announced that it plans to launch in Nashville. Initially, riders will need to use the Waymo app to hail a ride, but eventually riders will be able to book a Waymo through Lyft.
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Lyft will also provide vehicle maintenance services and depot operations through one of its subsidiaries. Waymo has already partnered with Uber in other cities, so the announcement is likely viewed poorly by Uber shareholders, who may see less of a competitive advantage for Uber's platform when it comes to the autonomous space. For Waymo, the move is about getting the word out, according to D.A. Davidson analyst Gil Luria.
NYSE: UBER
Key Data Points
"Waymo is ahead of the curve, arguably by far, in terms of having the best driver," Luria told Business Insider. "So it's their incentive to get that driver deployed as broadly as possible, and that includes trying to do that through existing service providers."
Uber has a lot riding on autonomous
Uber's stock is up close to 50% this year, and this performance can partly be attributed to the company's plans to be the main platform and partner of autonomous driving companies, so Uber's main rival partnering with one of its main autonomous clients is not the best news.
That said, I think there will be more than one winner in the autonomous space, and historically speaking, Uber has always had Lyft's number. I still think investors can buy Uber stock.
