New York, January 27, 2026, 20:58 EST — The market has closed.
Shares of Uber Technologies slipped 0.9% to close at $81.24 on Tuesday as investors digested the company’s renewed focus on autonomous vehicles alongside fresh legal challenges over driver classification.
Why it matters now: Uber is caught between two major factors that could quickly reshape its economics — robotaxis (driverless taxis) and gig work regulation. These issues loom large in nearly every discussion about the company’s valuation.
As the U.S. session kicks off Wednesday, traders will watch closely to see if autonomy drives Uber’s platform higher or remains a risk that keeps the stock stuck ahead of earnings.
Uber announced the launch of AV Labs, a new division aimed at “accelerating the autonomy ecosystem” by creating a “data flywheel” to gather rare, real-world driving scenarios on a large scale. Danny Guo, vice president of engineering and science, explained in a post on Uber’s newsroom that the key to progress in autonomy lies in learning from “rare, messy, real-world scenarios.” He added that Uber’s vast trip volume gives it a unique advantage in collecting this crucial data. 1
Stifel’s Mark Kelley lowered his price target on Uber to $105 from $122 but stuck with a Buy rating. He highlighted the “impact of robotaxis” as an ongoing concern. “We continue to believe that debate won’t be settled for some time,” he said. (A price target is an analyst’s estimate of where a stock could trade over the next year or so.) 2
In Europe, an Amsterdam appeals court reversed a 2021 ruling that had deemed all Uber drivers employees, ruling instead that drivers can be treated as self-employed. Uber hailed the decision as a “clear victory.” The labour union FNV expressed disappointment and is weighing additional legal steps. 3
New York City’s Department of Consumer and Worker Protection announced that amendments to delivery worker laws kicked in on Monday. The new rules require apps to provide a tipping option at checkout, with a suggested tip of at least 10% of the purchase price. According to the agency, DoorDash and Uber had previously employed “design tricks” that reduced tip earnings for workers—practices now deemed illegal. 4
Lyft, Uber’s key competitor in the U.S. ride-hailing market, dropped 2.4% to $17.54 on Tuesday. The decline highlights how vulnerable the company still is to changes in consumer demand and regulatory pressures.
The story could still tilt the other way. A quicker shift to robotaxis might squeeze pricing and cut into Uber’s bargaining power with partners. On top of that, tighter regulations on worker classification could hike costs in crucial markets.
Coming up fast: Uber’s Q4 earnings call is set for February 4 at 8:00 a.m. Eastern. Investors will be tuning in for shifts in the 2026 demand outlook and any early signals on the impact of AV Labs and new delivery regulations on margins and guidance — if those factors even make an appearance. 5
