GUANGZHOU, CHINA – APRIL 30: Passengers have their body temperature measured before taking a WeRide … More
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Updated, May 7, 2025: This post has been adjusted to include information from Uber’s Q1 2025 earnings report.
Shares in WeRide, a China-based autonomous vehicle technology provider, popped 40% Tuesday, according to Google Finance.
Why? The $2.6 billion market capitalization company is partnering with Uber — which is adding $100 million to its investment in WeRide — to expand its robotaxi services from Abu Dhabi to 15 more cities worldwide by 2030, according to CnEV Post.
Should investors buy WeRide stock? Although the company’s revenue fell in 2024 and its losses are huge, Uber’s vote of confidence in WeRide could contribute to significant growth and ultimate profitability.
WeRide’s Financial Performance And Business Model
WeRide — which operates a driverless commercial Robotaxi service in Beijing and does business in 10 countries — suffered a decline in revenue and a substantial loss in the fourth quarter of 2024, according to the company’s Q4 2024 earnings call transcript. More specifically, in the fourth quarter WeRide’s revenue fell 3% to $15.8 million coupled with a 112% increase in the company’s net loss to $34 million, noted the earnings call transcript.
WeRide has the potential to grow rapidly — with positive contribution margins — aided by local partnerships. Outside China, the company provides “autonomous vehicles and services to local partners and global platforms through a combination of selling the vehicles, charging a fixed service fee, and a revenue-sharing arrangement,” WeRide’s Chief Financial Officer Jennifer Li told investors in the earnings call.
To be sure, WeRide faces challenges when it introduces autonomous vehicles in a new location.
To overcome those challenges, WeRide builds up mutual trust — gradually introducing “automobile driving products, like we can always introduce RoboSweeper at first, and also fixed-route minibus, which the challenges for safety for this product relatively low compared to the requirements for Robotaxi,” WeRide CEO Tony Han told investors, according to the earnings call.
Uber’s Bet On WeRide’s Robotaxi Services
This trust has scaled sufficiently for Uber to expand its partnership with WeRide. By 2030, Uber — which already operates a robotaxi service in Abu Dhabi, with Dubai next in line — will roll out WeRide’s Robotaxi services in “15 new cities across Europe and other regions outside of China and the U.S.,” noted TipRanks.
The Uber-WeRide partnership splits up the work of operating robotaxis between the two companies based on their mutual strengths. WeRide provides the self-driving technology, while Uber integrates the service into its app and manages fleet operations, TipRanks reported.
WeRide offers another advantages to Uber’s efforts to expand autonomous services globally. That’s because WeRide’s presence in 30 cities across 10 countries includes “test licenses in China, UAE, Singapore, France, and the U.S.,” TipRanks reported, which will make it easier for Uber to overcome regulatory barriers to entry in key markets.
Uber has other robotaxi partnerships with Waymo, Volkswagen, Avride, May Mobility, and the autonomous trucking company Aurora in the U.S. as well as international partnerships with Pony.AI and Momenta, reported CNBC.
Besides its Waymo partnership, Uber has also agreed to work with Volkswagen, Avride, May Mobility, and for autonomous ride-hailing and freight services in the U.S. Uber has additional partnerships with AV companies internationally including with WeRide, Pony.AI and Momenta.
Should Investors Buy WeRide Or Uber Stock?
Based on analysts’ price targets, WeRide stock has more upside than Uber. Two analysts who cover WeRide set an average price target of $22, according to Zack’s — representing 133% upside.
Meanwhile, Uber — which just reported first quarter 2025 results — has less upside. More specifically, the ride-booking giant’s stock has 5.6% upside based on the average price target of 33 analysts of $90.20, noted TipRanks.
Uber’s stock fell 1.3% in May 7 trading after reporting a mixed result – in which the company’s revenue fell short of expectations while its earnings per share beat them. Specifically, Uber’s Q1 revenue of $11.53 billion fell $100 million short of London Stock Exchange Group expectations, according to CNBC, while Q1 earnings per share of 80 cents beat analysts’ views by 33 cents.
The company’s Waymo Austin launch “exceeded” Uber’s expectations and around 100 Waymo vehicles operating in Austin are now “busier than over 99% of all drivers” in Austin as measured by the number completed trips per day, Uber CEO Dara Khosrowshahi told CNBC.
With the global market for robotaxi services growing at an 80.8% average annual rate to $119 billion by 2031, according to Fortune Business Insights, WeRide stock may have further room to rise with help from the Uber partnership.
