Uber and Lyft Shares Dip Following GM’s Strategic Shift on Robotaxi Funding
Shares of ride-hailing giants Uber Technologies Inc. and Lyft Inc. took a hit after General Motors (GM) announced it would cease funding the development of its Cruise robotaxi unit.
Shares of ride-hailing giants Uber Technologies Inc. and Lyft Inc. took a hit after General Motors (GM) announced it would cease funding the development of its Cruise robotaxi unit. Uber’s stock fell by 3.4%, while Lyft experienced a sharper decline of 6.2%.
The decision by GM to withdraw support for its robotaxi project has raised concerns in the market, particularly due to Cruise’s earlier partnership with Uber.
Analysts suggest that while the rise of autonomous vehicle technology could eventually benefit Uber, uncertainties and competitive pressures in the sector continue to influence investor sentiment.
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The news reflects ongoing shifts in the autonomous vehicle industry, impacting companies tied to advancements in this space.
