Uber Eyes Japan Growth With $2B Plan, Aggressive Robotaxi Rollout
CEO Dara Khosrowshahi targets over 10 robotaxi markets by the end of 2026, signaling a major push into autonomous mobility despite high unit costs.
Uber Technologies Inc. is charting an ambitious international growth and autonomous vehicle strategy, with chief executive Dara Khosrowshahi outlining a multi-billion dollar investment in Japan and an aggressive timeline for robotaxi deployment.
In recent statements, Khosrowshahi highlighted Japan's "great potential" and announced plans to invest over $2 billion in the market over the next five years, with an initial commitment of $400 million slated for 2025. This move aims to deepen Uber's penetration in a market that has historically presented complex regulatory challenges for ride-sharing services.
Shares of Uber traded at $81.26 in recent sessions, a level technical analysts note is below its 50-day moving average of $89.43, with a Relative Strength Index (RSI) of 31.6 suggesting the stock is approaching oversold territory. The stock has seen a decline of over 16% in December amid broader market shifts and some investor concerns over the pace of autonomous development.
Despite the recent stock performance, Wall Street remains broadly optimistic. The consensus analyst price target for Uber sits at $111.84, implying a potential upside of more than 37% from its current price. This optimism is now buoyed by the company's forward-looking strategy in autonomous mobility.
Khosrowshahi revealed a bold vision for the company's robotaxi ambitions, targeting a rollout in "10-plus markets" globally by the end of 2026. This aggressive expansion comes with a significant price tag, as the CEO disclosed the cost of each robotaxi unit is approximately $150,000. "[We see] great potential," Khosrowshahi stated, signaling confidence that the long-term benefits of autonomy will outweigh the steep upfront investment.
The strategic pivot towards a large-scale robotaxi network represents a significant capital allocation and a firm bet on the future of transportation. While the high cost per vehicle poses a challenge, the potential for higher margins and operational efficiency by reducing reliance on human drivers is a core thesis for long-term investors. Uber's ability to integrate these autonomous vehicles into its existing global ride-hailing platform is seen as a key competitive advantage.
Analysts have largely maintained a 'Strong Buy' or 'Moderate Buy' consensus on Uber through December, according to stock analysis data, even as the stock has pulled back from its 52-week high of $101.99. The recent announcements may serve as a fresh catalyst, redirecting investor focus towards the company's long-term growth narrative and its efforts to solidify a dominant position in the next generation of urban mobility.
The company is navigating the transition from a human-driven network to a hybrid model that incorporates autonomous technology. This dual approach allows Uber to maintain its current market leadership while investing in the infrastructure and technology for a driverless future. The success of its expansion in Japan and the execution of its robotaxi rollout will be critical milestones for investors to watch in the coming year.