Mobileye plans to launch a robotaxi service in a U.S. city in 2027, marking a shift from pure supplier to operator of autonomous vehicles.

CEO Amnon Shashua says the move leverages Mobileye’s autonomous‑driving expertise, partnerships, and mobility‑ecosystem capabilities, serving as a complementary path to market rather than a replacement for existing customer relationships.

Moovit will provide mapping and fleet management for the new venture, while Mobileye continues collaborating with Volkswagen and may enable its technology in fleets operated by others, including Uber and Lyft.

Mobileye’s stock has shown varied sentiment, with mixed year‑to‑date and 12‑month performance amid broader underperformance.

Mobileye raised its annual revenue forecast in April, citing strong demand for chips and software as automakers restock post‑pandemic surpluses.

Analysts say execution and maintaining a clear separation between data, customer economics, and engineering are crucial, but the shift is not expected to disrupt existing client relationships.

Mobileye’s shares rose about 6% following the announcement.

Investors question potential conflicts of interest if Mobileye both supplies technology and operates its own competing fleet, echoing concerns seen with other platform providers.

Mobileye has a history of caution in end‑user autonomy, including a 2016 Tesla note after concerns over driver‑assist systems being marketed as driverless.

A major challenge will be rapid scaling, safety, and reliability to win passenger and regulator trust, with updates planned at Capital Markets Day later this year.

Industry context notes that 2027 is late for challenging leaders like Waymo, which operates hundreds of thousands of paid rides weekly, and references past supplier‑to‑operator attempts that faced hurdles.

The plan highlights capital‑intensive costs of running a robotaxi fleet versus Mobileye’s historically asset‑light chip‑and‑software business.