Self-driving cars were a pipe dream not so long ago, but today, several companies are on the cusp of deploying them in the real world. Cathie Wood's Ark Investment Management estimates autonomous ride-sharing will generate $4 trillion in revenue over the next five years. Uber Technologies (NYSE: UBER) is currently the undisputed leader in human-driven ride-hailing, though it has been working on driverless technology for years.
Uber has been securing similar tie-ups in global markets including Europe and Asia over the last two years, deepening its ties with the private taxi industry that was whiplashed by the rise of ride-hailing startups more than a decade ago. Under the new partnership, taxis associated with LA Yellow Cab and its five partner fleets will get bookings through the Uber app. The six taxi companies - which include San Diego Yellow Cab, California Yellow Cab, Long Beach Yellow Cab, Fiesta Taxi Cooperative and United Checker Cab - will add up to 1,200 cabs to the Uber platform.
The mean of analysts' price targets for Uber (UBER) points to a 30.4% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.