Lyft, Inc. (NASDAQ: LYFT) saw its stock price rise 12% at the open trading as high as $23.50 , before drifting back, as the company announced a new partnership with Alphabet’s self-driving car unit, Waymo, to launch an autonomous robotaxi service in Nashville in 2026. The collaboration will bring Waymo’s all-electric Jaguar I-Pace vehicles to the Nashville area, with public rides becoming available next year after several months of testing.
Waymo, known as a leader in autonomous driving technology, plans to introduce its robotaxis to Nashville as it continues expanding beyond its initial market of Phoenix. The rollout is part of a broader strategy that includes upcoming commercial operations in major cities such as Miami, Washington D.C., Seattle, Dallas, and New York City. This marks Waymo’s entry into Nashville with a new partner, Lyft, which will manage the fleet operations while Waymo focuses on vehicle testing and the autonomous technology itself.
Lyft’s role in this partnership is significant. The company will handle fleet management responsibilities, including vehicle upkeep, cleaning, charging infrastructure, and depot operations, through its subsidiary Flexdrive while also investing in a specially built facility in Nashville dedicated to supporting Waymo’s robotaxi fleet. This arrangement resembles Waymo’s existing partnership with Uber in Atlanta and Austin, but here Lyft gets to reassert its presence in the autonomous vehicle space after a previous collaboration with Waymo in Phoenix in 2019.
The Jaguar I-Pace has been a standout choice for Waymo’s fleet. It is an all-electric vehicle known for its quiet ride, city-friendly size, and a battery that supports continuous operation throughout the day. Since 2018, Jaguar and Waymo have worked closely to develop a fully self-driving, premium electric vehicle tailored specifically for Waymo’s ride-hailing service. As of mid-2025, Waymo had already deployed around 1,500 of these Jaguars and plans to add thousands more, aiming to provide up to a million trips daily across its service areas.
From a business perspective, Lyft’s stock movement reflects optimism that the partnership could provide fresh momentum. The company’s shares have seen solid gains in recent weeks but remain below pre-pandemic levels. This deal offers Lyft an opportunity to compete more directly with Uber, which has been quicker to rebound from the pandemic and has partnerships with Waymo’s rival players in some locations.
The service will first launch via the Waymo app, allowing customers to hail fully autonomous rides autonomously in Nashville. Later in 2026, Lyft’s own ride-hailing app will also enable access to Waymo’s vehicle fleet. This dual-application approach could help maximize reach and user adoption while Lyft leverages its operational and market expertise.
Lyft’s current financials reflect a company focused on recovery and growth, with recent earnings per share beating estimates and revenue expected to continue its upward trajectory. At the same time, Lyft is investing in infrastructure and fleet management technologies essential to support a high-quality autonomous ride-hailing service. The Nashville robotaxi launch aligns with its longer-term vision of integrating autonomous vehicles into its ride offerings as the industry evolves.
Waymo’s broader ambitions signal confidence in the autonomous taxi market’s potential despite ongoing regulatory and technical challenges. Their approach of combining hands-on vehicle testing with strategic partnerships for fleet management illustrates a pragmatic step toward scaling this technology in urban settings across multiple U.S. cities.
This latest push by Lyft and Waymo illustrates a shift in the autonomous ride-hailing landscape. As competition heats up among leading players, partnerships that bring together autonomous vehicle technology with established fleet operators may be the key to carving out market share and creating viable services that customers will trust and use regularly.
