According to Citigroup research analyst Ronald Josey, as the race to deploy autonomous vehicles as reliable ride-hailing options accelerates, Uber is positioned to lead its competitors thanks to its expanding roster of autonomous vehicle (AV) partners and its scale advantage. The company is expected to "achieve its goal of becoming the world's largest autonomous mobility platform by 2029." Since reporting its fourth-quarter results in early February, Uber has announced seven new or expanded autonomous driving partnerships. This includes a recent collaboration with Rivian, involving the deployment of 10,000 fully autonomous Rivian R2 robotaxis, with an option for an additional 40,000 vehicles.

Josey also highlighted that advancements in artificial intelligence (AI) technology are set to significantly shorten deployment timelines and reduce costs for autonomous driving. He specifically noted that Uber's partnership with NVIDIA "should help enable the deployment of a full-stack, driverless Level 4 autonomous system." He stated in his report, "We anticipate supply will begin to accelerate over the next 1 to 3 years, with Uber's mobility marketplace platform being a key driver of demand growth."

Uber recently also announced a $100 million investment to build a network of fast-charging stations in Los Angeles, Dallas, and San Francisco. Furthermore, it has established "utilization assurance agreements" with EVgo in New York, Boston, San Francisco, and Los Angeles. Uber CEO Dara Khosrowshahi stated on a recent earnings call, "We are more confident than ever that autonomous vehicles will unlock a multi-trillion dollar opportunity for Uber." Josey believes this is a goal where Uber holds a unique advantage for achievement. He said, "As autonomous vehicles expand globally, we view Uber as one of the companies best positioned to benefit, given its scale."

Therefore, given that the stock price has declined 10% year-to-date due to persistent concerns about autonomous driving, Josey suggests investors should take advantage of the current price dislocation. He commented, "We acknowledge market concerns regarding the long-term competitive landscape and pricing dynamics for autonomy. However, we also believe Uber's autonomy strategy can help drive more AVs to market. Uber continues to gain market share, a trend we expect to continue, helping the company navigate the scaling inflection point for autonomy." Josey reaffirmed his "Buy" rating on Uber with a $110 price target, implying a 49% upside from Friday's closing price.