By Al Root

Cars can drive themselves now, which is creating opportunities for many companies.

On Tuesday, autonomous driving hardware and software provider Mobileye said it plans to launch a robo-taxi service in a U.S. city in 2027.

"The robotaxi revolution has only just begun, and its potential for transforming how we travel around the world continues to increase," said Mobileye CEO Amnon Shashua in a news release. Mobileye has been developing autonomous driving technology for more than 20 years, Shashua added.

"Today we are taking the next step: combining those technologies with operational ownership to create a financially and geographically scalable robotaxi business designed from the ground up for global deployment," he said.

Mobileye stock jumped 3.6% in midday trading on Tuesday to $9.88, while the S&P 500 was down 0.1%.

The gain still leaves Mobileye stock down 36% over the past 12 months. Slowing growth and more competition have weighed on investor sentiment.

Competition comes from the likes of Alphabet's Waymo, Tesla, Nvidia, Amazon-backed Zoox, Nuro, and others. As the robo-taxi space gets more crowded, Mobileye sees a need to stop selling components and start driving passengers itself.

The move is yet another example that the long-promised era of driverless cars has arrived. Robo-taxis operate in 11 U.S. cities with a combined population exceeding 50 million.

One in six Americans could theoretically get a ride in a robo-taxi today. That ratio will decline in the coming months.

Write to Al Root at allen.root@dowjones.com

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June 16, 2026 12:59 ET (16:59 GMT)

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