Uber is going all in on the idea that your next meal might arrive by drone. The company announced a strategic partnership with Zipline, the drone delivery specialist, to bring autonomous delivery to millions of Americans. The move is a big bet on a future where the skies are as busy as the streets when it comes to getting stuff to your door.

Drones Are Coming to Uber Eats

Here's the plan: Uber Eats will start offering drone delivery later this year. They're not going to flip a switch and have drones everywhere overnight. Instead, they'll start in cities where Zipline already operates, then expand to dozens of U.S. cities. Uber is also making a strategic investment in Zipline, putting its money where its mouth is.

The two companies have set an ambitious goal: 1 million drone deliveries per day by the end of 2029. That's a lot of flying burritos. But Zipline isn't exactly a rookie. They've already completed more than 2.7 million deliveries and flown over 135 million autonomous miles. They operate across four continents and serve more than 5,000 hospitals and health facilities. So they know a thing or two about getting things from point A to point B without a human at the wheel.

This partnership adds another layer to Uber's delivery network, which already includes human couriers and sidewalk robots. It's like Uber is building a delivery army with multiple branches: ground troops, robot infantry, and now an air force.

Uber and Serve Robotics: A Breakup

While Uber is expanding its relationship with Zipline, it's also winding down another autonomous delivery partnership. The company recently sold its remaining stake in Serve Robotics, its sidewalk robot partner since 2022. That's a notable shift, especially since they had expanded their partnership in 2023 to cover up to 2,000 robots across several U.S. cities.

So what happened? Serve CEO Ali Kashani cited "differing views" over their shared autonomous fleet and operating model. Serve has also indicated that the partnership might not be renewed after it expires in 2027. It sounds like a classic case of two companies realizing they want different things out of the relationship. Uber is clearly betting that drones are the future, not just sidewalk robots.

The Technical Picture: Mixed Signals

Uber stock edged higher on Monday, even as the broader market was mixed. The Nasdaq was up 0.16%, while the S&P 500 fell 0.17%. The Industrials sector rose 0.43%. Not exactly a roaring day, but Uber managed to stay in the green.

Technically, things are looking a bit better. The stock is trading above its 20-day, 50-day, and 100-day simple moving averages, which are at $72.23, $72.33, and $73, respectively. That's a sign of improving short-term momentum. The MACD is also above its signal line, and the histogram is positive, which are both bullish signals.

But there's a catch. The stock is still about 2% below its 200-day SMA of $77.50. That's a key level that could determine the longer-term trend. If Uber can break above that, it could signal a bigger turnaround. If not, it might stay stuck in a range.

And let's not forget the bigger picture: Uber is still down 19.14% over the past 12 months. The stock is also dealing with the aftermath of a January death cross, when its 50-day SMA fell below its 200-day SMA. That's a bearish signal that often takes time to shake off.

For traders, the levels to watch are $78.50 as resistance and $69.50 as support. If the stock can push through resistance, it could open the door to more upside. If it falls below support, things could get dicey.

What Analysts Are Saying

Wall Street is still pretty bullish on Uber. The stock has a Buy consensus rating, with an average price target of $103.95. That's a significant upside from current levels.

Recent analyst moves have been a mixed bag. Roth Capital lowered its price target to $100 but maintained a Buy rating on Aug. 10. Jefferies raised its target to $110 and also maintained a Buy rating the same day. DA Davidson lowered its target to $100 while keeping a Buy rating on Aug. 6. So the overall sentiment is positive, even if some analysts are trimming their targets.

MarketDash Edge Rankings: Growth vs. Momentum

Uber's MarketDash Edge Rankings tell an interesting story. The stock scores 93.18 for Growth, which is very strong. But it scores just 55.86 for Value and a weak 21.33 for Momentum. That suggests Uber's long-term growth story is solid, but the stock is still struggling to gain traction in the short term.

The takeaway? Uber's fundamentals are strong, but the technicals need to catch up. The stock needs to reclaim its 200-day moving average to really strengthen its setup. Until then, the momentum crowd might stay on the sidelines.

ETF Exposure: A Double-Edged Sword

Uber is a major holding in several ETFs, including the Invesco Nasdaq Internet ETF (PNQI), the Pacer U.S. Cash Cows Growth ETF (BUL), and the Pathfinder Focused Opportunities ETF (PFOE). That means the stock's performance is tied to the flows in and out of these funds. If investors pile into these ETFs, Uber could get a boost. If they pull out, it could add selling pressure.

Price Action

At the time of publication Monday, Uber shares were up 0.03% at $75.97. It's a small move, but sometimes the biggest stories start with a whisper.

So, what's the bottom line? Uber is making a bold bet on drone delivery, and it's a bet that could pay off big if they can pull it off. The partnership with Zipline gives them a proven partner with a track record. But the stock still has some technical hurdles to clear. For now, it's a story worth watching, both in the skies and on the charts.