NEW YORK, Jan 27, 2026, 14:40 ET — Regular session
- Uber shares dropped roughly 0.6% in afternoon trading, touching a session low close to $79.88
- A Dutch court ruled that certain Uber drivers qualify as self-employed, marking a victory for the company’s contractor approach
- Uber revealed “AV Labs,” a fresh team designed to support autonomous-vehicle partners by providing real-world driving data
Uber Technologies (UBER) shares dipped 0.6% to $81.51 in afternoon trading Tuesday, hitting a low of $79.88 earlier on. Lyft dropped 1.6%, Tesla declined roughly 0.9%, and Alphabet climbed 0.7%.
Shares are edging amid investor debates over two key factors: the expenses tied to Uber’s driver-based system and the looming question of self-driving taxis, which could be either a risk or a breakthrough down the line.
Driver classification is crucial since court decisions can shift what platforms must pay in benefits, taxes, and protections. Autonomy is key because robotaxis — self-driving taxis — have the potential to reshape who sets prices and who pockets the profits.
An Amsterdam court has reversed a 2021 ruling that classified all Uber drivers as employees. The latest decision states that drivers can be considered self-employed, depending on factors like their vehicle investment and their ability to set hours and accept rides freely. Uber hailed the judgment as a win for “thousands of drivers” seeking to maintain their independent status. However, labour union FNV expressed disappointment and indicated it might take further steps. The court emphasized that employment status must be evaluated individually. (Reuters)
That might relieve one pressure point, but it doesn’t settle the matter. Investors now expect gig-work rulings to vary by jurisdiction—and even by individual drivers.
Uber pushed the autonomy conversation into its territory by announcing AV Labs, a fresh team aimed at kickstarting a “data flywheel.” This loop is designed to use real-world driving data to sharpen models, which then feed back to collect higher-quality data—especially for rare, complicated situations that simulations struggle to replicate. (Uber)
Those “edge cases” refer to the rare, costly scenarios that challenge automated driving systems: unusual construction layouts, tricky airport pickup zones, odd merges, and weather—basically, conditions you won’t find on a test track.
Uber told TechCrunch it’s not building its own robotaxis anymore. Instead, it plans to use sensor-equipped vehicles to collect driving data and provide processed information to autonomous-vehicle partners. CTO Praveen Neppalli Naga said the aim is to “democratize this data.” Uber engineering exec Danny Guo added the company feels compelled to act because it can “unlock the whole industry.” (TechCrunch)
Analysts remain divided over whether autonomy will serve as a toll road for Uber—a fresh service layer—or act as a bypass. On Tuesday, Stifel lowered its price target on Uber from $122 to $105 but kept a buy rating, pointing to persistent uncertainty surrounding robotaxis, Investing.com reported. (Investing)
Yet investors remain wary of certain risks. Labour disputes could reignite if unions file appeals or if courts adopt a stricter stance. At the same time, robotaxi networks might expand quicker than anticipated, putting downward pressure on take rates — Uber’s cut of each fare — just as the company ramps up spending to maintain its role in the ecosystem.
Uber is set to report its fourth-quarter and full-year 2025 earnings on Feb. 4, followed by a conference call at 8:00 a.m. Eastern. (Uber Investor Relations)
