Mobileye Global said on Tuesday it will launch and operate its own robotaxi service in the United States beginning next year, moving the self-driving systems supplier into direct competition with some of the automakers and mobility companies that are its customers.
The Jerusalem-based company, known for providing advanced driver-assistance systems to vehicle makers, outlined plans to deploy roughly 100 robotaxis in a major U.S. city starting in 2027. Mobileye said it aims to scale the service to approximately 17,000 vehicles over the subsequent five years.
Shares of Mobileye rose more than 4% in premarket trading on the announcement.
Mobileye frames the move as a way to accelerate adoption of autonomous mobility by operating a fleet itself. "Operating our own service allows us to accelerate adoption, gain direct operational experience, and showcase the full potential of autonomous mobility," said Mobileye CEO Amnon Shashua.
The company said it will deploy the service by integrating Mobileye Drive - its self-driving system - with the digital infrastructure of Moovit, the mobility platform it owns. Moovit provides urban mobility data, trip-planning tools and a global passenger network, which Mobileye plans to leverage for the ride-hailing operations.
Rather than manufacturing vehicles, Mobileye said it will own and operate the ride-hailing services under a single business division while working with external vehicle platform makers and fleet integration partners to supply and integrate the cars used in the service.
Mobileye emphasized that this direct venture into robotaxi operations will not alter its existing supply commitments to automaker customers. The company said the new operations are intended to complement and run alongside its current business of supplying chips, software and driver-assistance systems.
The announcement positions Mobileye within a crowded and competitive U.S. market for autonomous vehicle services that includes major players such as Waymo, Tesla and Zoox. The intensifying investment across the sector has heightened the race to capture both deployments and the associated revenue streams.
Mobileye already has partnerships that point toward commercial robotaxi deployments. U.S. ride-hailing platform Lyft said last year it planned to deploy fully autonomous robotaxis as soon as 2026 in Dallas using Mobileye technology.
Earlier this year, Mobileye raised its annual revenue forecast in April, citing strong demand for its chips and software as automakers replenished inventories after a prolonged surplus tied to the pandemic.
Key points
- Mobileye will start a U.S. robotaxi pilot with about 100 vehicles in 2027 and aims to grow to roughly 17,000 vehicles within five years.
- The service will combine Mobileye Drive with Moovit's digital mobility platform and rely on third-party vehicle platforms and integrators rather than in-house manufacturing.
- The move places Mobileye in direct competition with established autonomous service providers and automakers pursuing robotaxi strategies, affecting the mobility and automotive sectors.
Risks and uncertainties
- Competitive pressure - Entering a market with major incumbents such as Waymo, Tesla and Zoox creates significant competitive risk for market share and pricing in autonomous mobility services.
- Operational scale-up - Expanding from an initial fleet of about 100 vehicles to roughly 17,000 over five years presents execution and integration challenges for operations and fleet partners.
- Customer and partner relationships - Running its own ride-hailing operations, even while committing to keep supply relationships intact, could create tensions or conflicts with automaker customers and other partners.
Mobileye presented the initiative as complementary to its existing supplier role and reiterated that its direct operations would run alongside its current business. The company will not manufacture the vehicles itself, opting instead to collaborate with vehicle makers and integrators to assemble and operate the fleet.
As the autonomous vehicle sector sees rising investment and deployment ambitions, Mobileye's announcement underscores a strategic shift toward not only providing components and software but also capturing value through direct service operations in ride-hailing and mobility.