Ride-hailing platform Lyft (LYFT) has partnered with Mobileye (MBLY), an autonomous driving technology provider, to launch fully autonomous robotaxis in Dallas, Texas, as early as 2026. Following the announcement of the news, LYFT and MBLY stocks soared 6.7% and 11.8%, respectively, on Monday. Importantly, the announcement comes as Lyft prepares to report its fourth-quarter earnings later today.
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Currently, Wall Street analysts expect Lyft to post revenue of $1.59 billion in Q4, up from $1.23 billion in the year-ago quarter. Further, the company is expected to report earnings of $0.21 per share, compared with $0.19 in the prior-year quarter.
MBLY’s Technology to Power Lyft’s Self-Driving Fleet
Mobileye’s self-driving technology will be integrated into the vehicles used in Lyft’s autonomous fleet. This technology includes features such as real-time mapping, collision avoidance, and adaptive cruise control, ensuring a safe and efficient ride experience.
Further, the vehicles equipped with this technology will be owned and financed by Marubeni, a Japanese conglomerate with expertise in fleet management. Riders will be able to choose an autonomous vehicle ride through the Lyft app.
Importantly, Lyft aims to expand its autonomous fleet to other cities after the initial launch in Dallas.
Autonomous Ride-Hailing Market Heats Up
By partnering with Mobileye, Lyft is looking to strengthen its position in the autonomous ride-hailing market. Moreover, this move allows Lyft to compete with rivals like Uber (UBER), which has already launched driverless rides in Phoenix in partnership with Alphabet’s (GOOGL) Waymo. It must be noted that Uber plans to expand its autonomous ride services to Austin and Atlanta in the coming months.
Also, another rival in the autonomous vehicles market, Tesla (TSLA), is looking to launch robotaxis in Austin, Texas, as early as this year, equipped with its full self-driving (FSD) software.
Is LYFT Stock a Buy or Sell?
Turning to Wall Street, Lyft stock has a Moderate Buy consensus rating based on six Buys and 15 Holds assigned in the last three months. At $18.41, the average Lyft price target implies a 21.76% upside potential. Shares of the company have gained 55.72% over the past six months.
