General Motors Company’s (GM - Free Report) self-driving car unit ‘Cruise’ and food delivery service ‘DoorDash’ are tying up to test autonomous technology for meal and grocery deliveries, per CNBC. The program, slated to begin in March, will deliver meals from certain restaurants. This will also include delivery of grocery items from some specific stores. Per the company, the program will initially be concentrated in the San Francisco area.
Auto giants are emphasizing on developing business models for driverless vehicles. In early 2018, the second-largest automaker Ford Motor Company (F - Free Report) made the announcement of partnering with Domino's Pizza and delivery service ‘Postmates’ in Miami.
Starting a delivery service is a major opportunity for Cruise as the company looks for commercialization of the autonomous vehicle technology and to redefine transportation. Partnership with DoorDash will provide the company with the ability to advance its goal to deliver technology for the betterment and convenience of people. Notably, General Motors invested $1.1 billion in GM Cruise. Investments are expected to provide the capital that is necessary to reach commercialization at scale, beginning in 2019.
General Motors has underperformed the industry it belongs to in the past six months. The company’s shares have declined 18.3% compared with 12.3% decrease recorded by the industry.
Currently, General Motors carries a Zacks Rank #2 (Buy) while Ford has a Zacks Rank #4 (Sell).
A couple of other top-ranked stocks in the auto space are Advance Auto Parts, Inc. (AAP - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) , each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Advance Auto Parts has an expected long-term growth rate of 12.1%. Over the past year, shares of the company have increased 19.9%.
Fox Factory has an expected long-term growth rate of 17.9%. Over the past six months, shares of the company have risen 9.5%.
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