This article first appeared on GuruFocus.
Uber Technologies (NYSE:UBER) is pushing further into robotaxis, with plans to launch driverless rides in Houston using vehicles developed by Lucid Group (NASDAQ:LCID) and Nuro. Nuro is already testing the vehicles in Houston, but Uber said the service is not expected to begin until mid-2027. Lucid is also expected to expand its fleet of test vehicles from its Arizona factory in the coming weeks for further safety validation and certification work.
The move could put Uber in closer competition with Alphabet’s (NASDAQ:GOOGL) Waymo in the fourth-largest US city. Uber already partners with Waymo to offer rides through the Uber app in Austin, Atlanta, and Phoenix, while Waymo also operates independently in major markets including San Francisco, Los Angeles, Houston, and Dallas. After selling its in-house autonomous research team in 2020, Uber has shifted toward building the platform and operating infrastructure needed to support commercial robotaxi services.
Uber has invested hundreds of millions of dollars in Lucid and Nuro, and it has expanded its purchase commitment with Lucid to at least 35,000 robotaxis. In Houston, Uber has signed a multiyear lease for a 50,000-square-foot depot with 40 fast chargers and 15 maintenance bays, with construction expected to begin in early 2027. The facility could become a key operating base for charging, maintenance, repairs, cleaning, and daily fleet management as Uber builds out its autonomous ride-hailing strategy.
