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Uber Shares Gain On Strategic Partnership with EV-Maker BYD Auto

Published 08/01/2024, 01:29 AM
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Uber Technologies (NYSE:UBER) and BYD have joined forces in a multi-year strategic partnership.

Uber Technologies and BYD announced a groundbreaking multi-year strategic partnership on July 31, 2024, to accelerate the global transition to electric vehicles in the ride-hailing industry.

The collaboration between the world’s largest on-demand mobility platform and a leading electric vehicle manufacturer promises to reshape urban transportation across multiple continents.

Uber’s stock gained on the news, up 2.01% at the time of writing.

Uber-BYD Partnership to Introduce 100,000 BYD EVs into the Uber Platform

The partnership’s primary objective is to introduce 100,000 new BYD electric vehicles onto the Uber platform in key global markets.

Initially focusing on Europe and Latin America, the alliance plans to expand its reach to the Middle East, Canada, Australia, and New Zealand. Uber drivers will gain access to competitive pricing and financing options for BYD vehicles, potentially reducing the total cost of EV ownership.

The collaboration extends beyond vehicle deployment, with both companies agreeing to work on future BYD autonomous-capable vehicles for the Uber platform. This joint effort could pave the way for Uber to introduce autonomous vehicle technology on a global scale, further solidifying its position in the evolving transportation landscape.

Uber Stock Gains on the News

As news of the partnership broke, Uber’s stock showed positive movement in early trading. As of 10:01 AM EDT on July 31, 2024, Uber’s stock price stood at $64.36, up $1.27 (2.01%) from the previous close. The company’s market capitalization reached $135.91 billion, reflecting investor confidence in Uber’s strategic direction.

Uber’s stock has demonstrated strong performance across various timeframes, outpacing the S&P 500 in year-to-date, one-year, and three-year returns.

The company’s year-to-date return of 44.53% significantly surpasses the S&P 500’s 15.49% gain. With analyst recommendations leaning towards “Strong Buy” and “Buy,” market sentiment appears favorable as Uber approaches its earnings report scheduled for August 1, 2024.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.

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