Yandex N.V. (YNDX Quick QuoteYNDX ) has been persistently making efforts to strengthen its autonomous vehicle service.
Recently, the company announced plans to begin testing autonomous vehicles in Moscow. This is a testament to the above-mentioned fact.
The company will soon introduce Robotaxis with the help of the Yandex.Go application in Yasenevo, Moscow.
Yandex has already been testing autonomous driving technology in Russia, Israel and the United States.
The company strives to expand its driverless taxis to more locations in the near term.
Yandex N.V. Price and Consensus
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Growing Autonomous Vehicle Market
The recent move is expected to help Yandex penetrate the autonomous vehicles market.
This market is witnessing growth in recent times owing to an increasing number of road accidents and the growing need for driver assistance technologies.
Further, growing investments for transportation infrastructure development and rising disposable income in the developing regions are positively influencing the market.
Per a report by MarketWatch, the autonomous vehicle market is likely to witness a CAGR of 63.5% between 2020 and 2027.
Further, the move will expand its presence in the Robo Taxi market. A report by Verified Market Research indicates that the market will hit $30.39 billion by 2028, witnessing a CAGR of 61.88% during the 2021-2028 period.
Yandex — which carries a Zacks Rank #5 (Strong Sell) at present — is reeling under the competitive pressure of Alphabet’s (GOOGL Quick QuoteGOOGL ) Waymo, which holds the leading position in the autonomous driving space.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recently, Waymo One Trusted Tester hit the streets of San Francisco and is now welcoming people to hail a ride in a self-driving Jaguar I-Pace. Currently, rides will be limited to the company’s initial service area.
The move marks the very first expansion of the driverless ride-hailing service of Waymo outside Phoenix, AZ.
Other tech bigwigs like Amazon (AMZN Quick QuoteAMZN ) , Intel (INTC Quick QuoteINTC ) , Apple and Baidu are also making concerted efforts to bolster their presence in this particular market.
Hence, stiffening competition remains a major risk for Yandex.