If you're wandering the beaches of Dubai this weekend, you might notice something different about your Uber options. WeRide Inc. (WRD) and Uber Technologies, Inc. (UBER), working alongside Dubai's Roads and Transport Authority, just flipped the switch on robotaxi rides available through the regular Uber app.
Starting Friday, anyone in Umm Suqeim and Jumeirah, two popular tourist areas near Dubai's public beaches, can book a WeRide robotaxi by selecting the "Autonomous" option in the app. It's basically like ordering a regular ride, except your driver is an algorithm.
Tawasul will handle the day-to-day operations of the WeRide fleet on Uber's platform, managing the vehicles and keeping everything running smoothly.
This launch caps off months of joint pilot testing that kicked off after Uber and WeRide announced their partnership back in April. For now, there's still a human specialist riding along in each vehicle to monitor safety and system performance. Think of it as autonomous driving with training wheels. The companies are aiming to remove those training wheels and launch fully driverless commercial service in early 2026.
The move supports Dubai's rather ambitious goal of making 25% of all journeys autonomous by 2030. It also helps meet the growing demand for ride-hailing in a city where tourists and residents alike rely heavily on app-based transportation.
Abu Dhabi Already Went Fully Driverless
Dubai's launch comes a few months after WeRide and Uber made an even bigger splash in Abu Dhabi. In November, they launched Level 4 fully driverless robotaxi commercial service there, no safety driver required.
That rollout made Abu Dhabi the first city in the Middle East, and the first market outside the United States, to offer completely driverless rides through the Uber platform. The launch was possible because the city issued what's claimed to be the world's first permit for fully autonomous robotaxi operations outside the U.S.
The Competitive Pressure Is Real
For context, Uber is a $178 billion ride-hailing giant that's seen its stock climb 42% year-to-date. WeRide, meanwhile, has had a rougher ride. The stock has tanked 37% as competition from rivals like Pony AI Inc. (PONY) heats up and investors grow cautious about the broader Chinese autonomous vehicle sector.
Uber has its own worries, though. Investor Ross Gerber has been vocal about the threat posed by Alphabet Inc. (GOOGL) subsidiary Waymo, which is expanding rapidly in the U.S. market.
Gerber pointed out that Waymo's 450,000 weekly rides and estimated 2,500-car fleet are generating roughly $200 to $250 per vehicle per day, pushing annual revenue past $200 million and "growing fast." He's gone so far as to argue these gains show "Uber is cooked," a view he's repeated before while highlighting Waymo's rising market share in San Francisco.
Then there's Elon Musk, who continues promoting Tesla Inc.'s (TSLA) driverless robotaxi plans in Austin and the company's upcoming Full Self-Driving expansion in Europe. The autonomous vehicle race is getting crowded.
The Massive Market Opportunity
Despite the competitive chaos, Bank of America Securities analyst Justin Post sees autonomous vehicles becoming a critical value driver for mobility companies like Uber and Lyft Inc. (LYFT).
Post notes that ride-hailing services currently capture just 1% of the 3 trillion miles Americans drive annually. But he expects AV adoption to push that figure as high as 20% of total U.S. miles traveled over the next 15 years.
At a projected cost of $1.50 to $2.00 per mile, he's looking at a potential market opportunity of $900 billion to $1.2 trillion. That's the kind of number that explains why everyone from Uber to Tesla to Alphabet is racing to dominate autonomous mobility.
Price Action: WeRide shares were up 1.57% at $9.06 during premarket trading on Friday, according to market data. UBER was up 0.25%.
