WeRide, Uber, Avomo win Spain’s “first” level 4 AV permit

Uber (NYSE:UBER) will cut 10% of its workforce, about 3,300 employees, to fund a $10 billion investment in autonomous vehicles. CEO Dara Khosrowshahi aims to simplify the company and redirect savings toward growth initiatives. Uber's shares rose modestly on the news but are down 8-12% year-to-date. The company reported strong gross bookings and free cash flow in Q2, but faces competition from Alphabet's Waymo in the autonomous vehicle market.

Uber, WeRide, and AVOMO secured Spain's first national permit for Level 4 autonomous vehicles. The approval allows them to operate in Madrid and expand to 11 more cities by 2030. Uber's shares have gained in the past three months, trading at a 12-month forward P/S of 2.31X. Commercial operations in Spain are expected by late 2026, subject to regulatory requirements.

WeRide, Uber, and AVOMO received Spain's first permit for Level 4 autonomous passenger vehicle operations in Madrid. The approval allows testing and eventual commercial Robotaxi services starting in 2026, with plans to expand globally. WeRide's technology, Uber's platform, and AVOMO's fleet management will be combined for this project.

California regulators certified the California Gig Workers Union for Uber and Lyft drivers, allowing them to negotiate pay and benefits. The union secured support from 30% of active drivers. Uber and Lyft have committed to working with the union. California is the third state to allow ride-hailing driver unionization, following Washington and Massachusetts.

Uber shares rose 1.3% to $72.04. Adjusted EBITDA increased 33% in Q2, with a 4.9% margin. Waymo's expansion with Lyft may impact Uber's margins. Uber aims to diversify autonomous partners, launching Wayve rides in London. Q3 guidance suggests stable margins. Investors watch for autonomous trip volume and partner economics.

Uber Technologies shares rose 2.8% after CEO Dara Khosrowshahi bought $10M worth of stock, purchasing 141,000 shares at an average price of $70.96. The company's stock is down 12% year-to-date. Khosrowshahi now directly holds 1,367,100 shares.