Uber Technologies Inc. (NYSE:UBER) has secured Madrid as the fourth city covered by its partnership with WeRide, bringing Spain into its rapidly expanding autonomous vehicle network. The company’s broader AV strategy covers more than 30 partners, while Uber expects to commit more than $10 billion across AV investments, infrastructure, and vehicle offtake over the coming years. At the center of that strategy is Uber’s decision not to build self-driving technology itself. Instead, the company wants to become the indispensable demand layer for whichever AV providers ultimately emerge as winners. Yet the diversification strategy is facing pressure in key areas. One of its most prominent AV partners is pulling back, while another remains under an active safety investigation.
Madrid Becomes the Fourth City in the Uber-WeRide Partnership
Uber, WeRide, and AVOMO have secured Spain’s first national permit covering level 4 autonomous passenger vehicles. The permit was issued by Spain’s Directorate General of Traffic and allows the companies to begin deployment preparations on public roads in Madrid. Under the permit, WeRide can test its GXR vehicles and conduct roadmapping throughout Madrid in preparation for a commercial launch planned for year-end. The rollout will begin with 20 vehicles, each supervised by an in-car specialist, operating across high-demand areas of Greater Madrid. Madrid becomes the fourth city included in the Uber-WeRide partnership, which plans to reach 15 cities globally by 2030. The expansion also fits Uber’s broader asset-light AV strategy, which includes more than 30 partnerships while Uber expects to commit over $10 billion across AV investments, infrastructure, and vehicle offtake over the coming years.
When a Major AV Partner Starts Pulling Away
The diversification of Uber’s AV network does not eliminate risks from individual partners. Uber and Waymo confirmed in late June that their Phoenix partnership had ended, while Waymo is reportedly considering a broader exit from its relationship with Uber. This comes even as Uber executives have publicly criticized Waymo’s model while investing substantial capital in competing fleets. Avride is facing a separate challenge, with the NHTSA investigating the Uber AV partner after multiple crashes. At the same time, Tesla is ramping up its own Cybercab fleet, while Waymo has raised $16 billion to accelerate its independent growth. Together, these moves could reduce Waymo’s reliance on Uber while increasing competitive pressure on Uber’s AV platform.
Hedge fund ownership of the stock remained broadly stable, with the number of funds holding the stock slipping from 153 at the end of Q1 2026 to 151 at the end of Q2 2026. The minor decline represents a negligible change and points to stable institutional positioning. Meanwhile, short interest stood at only 2.29% of float as of August 31, 2026.
Uber has real advantages from operating a network that can support both human drivers and autonomous vehicles. Still, the deterioration of its Waymo relationship and safety concerns involving other partners point to risks beneath the surface. These challenges suggest the coordination and reputational risks may be greater than the latest expansion into another city would imply.
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