Uber Technologies Inc. (NYSE:UBER) and drone delivery company Zipline announced a strategic partnership Monday to expand autonomous delivery across the U.S.

Drone Delivery Coming To Uber Eats

The companies plan to launch drone delivery on Uber Eats later this year. They will start in existing Zipline markets before targeting dozens of U.S. cities.

Uber will also make a strategic investment in Zipline. Together, the companies aim to reach 1 million drone deliveries per day by the end of 2029.

Zipline has completed more than 2.7 million deliveries and flown over 135 million autonomous miles. The company operates across four continents and serves more than 5,000 hospitals and health facilities.

The partnership adds drones to Uber’s growing delivery network, which already includes human couriers and sidewalk robots.

Uber Exits Serve Robotics Stake

Uber is expanding one autonomous delivery partnership while another winds down. The company recently sold its remaining stake in Serve Robotics Inc. (NASDAQ:SERV), its sidewalk robot partner since 2022.

Uber and Serve expanded their partnership in 2023 to cover up to 2,000 robots across several U.S. cities. However, Serve CEO Ali Kashani recently cited “differing views” over their shared autonomous fleet and operating model. Serve has indicated the partnership may not be renewed after it expires in 2027.

Read Also: Billionaire Uber Co-Founder Travis Kalanick Says He Has ‘No Regrets’ Over Uber’s Failed Lyft Acquisition: ‘We Were Very Culturally Different’

Technical Picture Improves

Uber stock edged higher Monday as the broader market traded mixed. The Nasdaq gained 0.16%, while the S&P 500 fell 0.17%. The Industrials sector rose 0.43%.

The stock is trading above its 20-day, 50-day and 100-day simple moving averages of $72.23, $72.33 and $73, respectively. That signals improving short-term momentum.

However, the stock remains about 2% below its 200-day SMA of $77.50. That level could serve as an important test for the longer-term trend.

The MACD is above its signal line, while the histogram remains positive. Both indicators point to improving momentum.

Still, Uber remains down 19.14% over the past 12 months. The stock also remains under the shadow of a January death cross, when its 50-day SMA fell below its 200-day SMA.

Traders may watch $78.50 as resistance and $69.50 as support.

Analyst Outlook

Uber carries a Buy consensus rating with an average price forecast of $103.95.

Roth Capital lowered its price forecast to $100 while maintaining a Buy rating on Aug. 10. Jefferies raised its forecast to $110 and maintained a Buy rating the same day. DA Davidson lowered its forecast to $100 while keeping a Buy rating on Aug. 6.

Benzinga Edge Rankings

Uber’s Benzinga Edge Rankings highlight strong growth but weak momentum. The stock scores 93.18 for Growth, 55.86 for Value and 21.33 for Momentum.

The readings suggest Uber’s longer-term growth profile remains a strength. However, the stock still needs to reclaim its 200-day moving average to strengthen its technical setup.

ETF Exposure

Uber is a major holding in the Invesco Nasdaq Internet ETF (NASDAQ:PNQI), Pacer U.S. Cash Cows Growth ETF (NYSE:BUL) and Pathfinder Focused Opportunities ETF (NASDAQ:PFOE).

As a result, significant inflows or outflows from these funds could affect demand for Uber shares.

UBER Price Action

Uber shares were up 0.03% at $75.97 at the time of publication Monday, according to Benzinga Pro data.

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