Why Uber Stock Accelerated This Week
A stock that took quite a beating during the stay-at-home period that was much of the coronavirus pandemic, Uber Technologies (NYSE: UBER) did quite well this week. According to data compiled by S&P Global Market Intelligence, shares of the ride-sharing giant rose by nearly 6% over the course of the five trading days.
Uber stock's acceleration was due mainly to a pair of factors. The first was the news that the company is teaming up with Motional to offer driverless rides, and effect food deliveries through its ordering service, in the self-driving vehicle maker's Ioniq 5 robotaxis. The deal between the two companies is a sprawling one, as it will be in effect for 10 years and cover a range of markets around the globe.
The autonomous driving future can't come fast enough for Uber; self-driving cars, of course, require no human driver. As a result, they don't need to get paid and require far less management. Uber had a proprietary self-driving technology unit, ATG, which was launched in 2015. It burned away a lot of capital with insufficient results, however, and was divested in 2020.
Source Fool.com
