Lyft (LYFT) shares are inching up on Monday after announcing a strategic partnership with Baidu (BIDU) aimed at launching robotaxi services in Europe in 2026. The ride-hailing firm will begin its regional driverless taxi operations first in the UK and Germany only, with plans of growing across the continent over time. 

Including today’s gain, LYFT stock is up roughly 45% versus its year-to-date low on April 8.  

Baidu Partnership Could Unlock Upside in Lyft Stock

Teaming up with Baidu on launching robotaxi services in Europe is a strategic win for Lyft, and it's one that could essentially reshape its growth narrative moving forward. 

For years, investors have seen the Nasdaq-listed firm as a U.S.-centric player overshadowed by peer Uber’s (UBER) global footprint – but now Lyft is positioning itself at the forefront of autonomous mobility on a global scale.

Leveraging Baidu’s mature driverless technology will also enable LYFT to shield itself against the massive R&D costs often associated with AV development. 

If successful, robotaxis could dramatically reduce driver-related expenses, improve margins, and unlock new revenue streams – potentially unlocking notable further upside in Lyft's stock price next year.  

What Could Drive LYFT Shares Up in the Second Half of 2025

Note that the robotaxi announcement adds to a long list of catalysts that could drive LYFT shares up further in the second half of 2025. 

The ride-hailing firm is scheduled to report its second-quarter earnings after the close this Wednesday, Aug. 6. Consensus is for Lyft to report 6 cents per share in earnings for Q2 – indicating a year-over-year increase of a whopping 100%. 

In May, the Nasdaq-listed firm announced a major increase in its stock repurchase authorization to $750 million, boosting shareholder value as well. 

That’s one reason why TD Cowen analysts maintained a “Buy” rating on LYFT stock in their latest research note, with global expansion potential cited as another bullish catalyst. The investment firm’s $21 price target indicates potential for another 50% upside from here. 

How Wall Street Recommends Playing Lyft Stock

What’s also worth noting is that TD Cowen is not the only Wall Street firm that’s keeping bullish on Lyft stock. 

While the consensus rating on LYFT shares currently sits at a “Hold” only, the mean target of about $17 indicates potential upside of more than 20% from current levels.