Uber partners with Motional to bring robotaxi service to Las Vegas

MOZCO Mateusz Szymanski

Uber Technologies (NYSE:UBER) and driverless technology company Motional announced that they will bring a robotaxi service to Las Vegas, letting riders grab an autonomous ride on Uber's app.

The announcement is part of a 10-year, non-exclusive agreement for the two companies and Motional's Level 4 autonomous vehicles. The service will see expansion into Los Angeles at a later date.

Uber (UBER) users can book a trip on the app and if an autonomous vehicle is available, they will be matched and receive an offer to opt-in, being notified that the car is autonomous. The vehicles will have operators, but it is expected that by 2023 it will be a fully driverless experience.

The service is using Motional's all-electric Hyundai IONIQ 5-based robotaxis. Motional is a joint venture between Hyundai and and Aptiv (NYSE:APTV).

Motional has also been used for Uber (UBER) Eats deliveries in the Greater Los Angeles area, the two companies added.

Last month, Motional and Lyft (LYFT) announced that they would have their own robotaxi service in Los Angeles, after having previously announced Las Vegas.

Uber (UBER) shares fell fractionally in premarket trading to $26.82, while Lyft (LYFT) also traded slightly lower to $10.37.

Earlier this week, Goldman Sachs listed Uber (UBER) as one of the 12 stocks that mutual and hedge funds love right now.