We know the problems ride-hailing company Uber (NASDAQ:UBER) has had with government regulators lately. It tries to convince the government that large portions of its workforce are totally independent contractors to avoid paying employee taxes. That might be about to get much easier, as Uber was recently seen adding Waymo self-driving cars to its repertoire. That development gave Uber a 1.5% boost in Wednesday afternoon’s trading.
The initial program is somewhat limited in scope, as it’s pretty much just in one part of Arizona: the Phoenix Metropolitan Area, which includes Phoenix, Tempe, Mesa, and Chandler. Further, not all restaurants in that area are working with the Waymo cars, just “select merchants” in that area.
The partnership between Uber and Waymo first emerged last year, and now the service is going live. While this is the first time that Waymo vehicles have been involved, this is actually the seventh location that will feature autonomous deliveries. Thus, Uber isn’t a stranger to self-driving delivery systems, but this is a first for Waymo.
Fighting the Regulators
Meanwhile, Uber is fighting back in Minnesota, specifically in St.Paul/Minneapolis. The Twin Cities, as they’re known, put in a local ordinance that requires Uber to pay its workers $1.40 per mile and $0.51 per minute. Uber notes that that’s not sustainable and is thus planning to pack up and leave altogether. Reports suggest that Lyft (NASDAQ:LYFT) is in a similar position and planning to do the same. That’s got Minnesota Governor Tim Walz getting involved, looking for a “compromise” that will somehow keep the two in place.
What Is the Analyst Price Target for Uber?
Turning to Wall Street, analysts have a Strong Buy consensus rating on UBER stock based on 34 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 149.16% rally in its share price over the past year, the average UBER price target of $87.19 per share implies 11.41% upside potential.
