Cooperation upgrade! Uber Technologies, Inc. (UBER.US) and Waymo launch driverless taxi service in Atlanta.

Uber Technologies, Inc. (UBER.US) announced on Tuesday that it will begin offering Alphabet's (GOOGL.US) Waymo autonomous taxi services to users in Atlanta. This is another collaboration between the two companies following their partnership in Austin, Texas. Uber stated that dozens of Waymo's robotaxis will service a 65 square mile area in Atlanta, including downtown, Buckhead, and Capitol View, with plans to expand coverage in the future. Back in April, Uber Technologies, Inc. informed passengers that they could indicate their preferences in the Uber Technologies, Inc. app to increase their chances of getting a ride in an autonomous vehicle. Uber Technologies, Inc. also added that users can always choose whether to accept an autonomous ride and can switch to a human-driven vehicle before the vehicle is dispatched. Uber Technologies, Inc. stated that Waymo has already deployed 100 vehicles in Austin and plans to introduce hundreds more vehicles in Austin and Atlanta over the next few years. Atlanta is becoming a hot spot in the autonomous driving market. Uber Technologies, Inc.'s competitor Lyft (LYFT.US) is expected to launch a safety-driver-equipped autonomous ride-hailing service in the city as early as this summer, in partnership with Toyota-backed May Mobility. Additionally, Zoox, owned by Amazon.com, Inc. (AMZN.US), is also testing its autonomous driving technology in downtown Atlanta. Uber Technologies, Inc. has been collaborating with Waymo since 2023, providing ride-hailing and delivery services in Phoenix. While Waymo also operates services through its own consumer app in Phoenix, San Francisco, and Los Angeles, Uber Technologies, Inc. is the only platform in Austin and Atlanta where users can request a Waymo robotaxi. Uber Technologies, Inc. stated that users in Austin have been satisfied with their Waymo autonomous driving experience, with an average rating of 4.9 stars (out of 5). Additionally, Uber Technologies, Inc. also partners with Wenyuanzhihang (WRD.US) to provide autonomous driving services in Abu Dhabi. For Uber Technologies, Inc., this collaboration with Waymo in Atlanta is crucial. Uber Technologies, Inc. has entered into over 12 autonomous driving partnership agreements globally, aiming to prove to Wall Street that it has the potential to become the preferred commercial platform for autonomous vehicle manufacturers. Uber Technologies, Inc.'s strategy is to leverage its brand influence and operational experience with the passenger-driver matching system to generate enough user demand and revenue to offset the manufacturing and maintenance costs of autonomous vehicles. However, although it will take time for Waymo to expand its fleet of around 1,500 vehicles to compete with Uber Technologies, Inc.'s number of drivers in major markets, there are still concerns in the market about what might happen to Uber Technologies, Inc. if Waymo decides not to expand its collaboration to more cities in the future.