TLDR:
- Waymo secured $5.6 billion in funding, led by Alphabet, marking its largest funding round
- Currently operates in San Francisco, Phoenix, and Los Angeles with 100,000+ weekly rides
- Partnership with Uber to expand into Austin and Atlanta starting next year
- Total capital raised now reaches $11.1 billion, with Alphabet committing up to $5 billion
- Plans to expand fleet with Hyundai EVs and test in winter weather conditions
The self-driving unit of Alphabet Inc., Waymo, has announced the closure of a $5.6 billion funding round, marking its largest investment to date.
The round was led by parent company Alphabet and included participation from notable investors such as Andreessen Horowitz, Fidelity Investments, and T. Rowe Price Group.
Waymo’s current operations span across three major U.S. cities – San Francisco, Phoenix, and Los Angeles – where its autonomous vehicles provide more than 100,000 rides weekly. The company’s fleet consists primarily of retrofitted Jaguar EVs, which have logged over 25 million miles without a human driver as of August 2024.
In a strategic move to expand its reach, Waymo has partnered with Uber Technologies Inc. to offer rides through the Uber app in Austin and Atlanta, with services expected to begin in 2025. This collaboration represents a major step in Waymo’s market expansion strategy.
The investment comes after Alphabet’s July announcement of a commitment to invest up to $5 billion in Waymo over several years. This latest funding round brings Waymo’s total capital raised to $11.1 billion, following previous rounds of $2.25 billion in 2020 and $2.5 billion in 2021.
Waymo co-CEOs Tekedra Mawakana and Dmitri Dolgov have stated that the new funding will support both geographical expansion and continued advancement of the Waymo Driver technology for business applications.
The company is set to diversify its fleet through a partnership with Hyundai Motor Co., which will supply EVs equipped with built-in autonomous driving technology from its new Georgia plant. This addition will complement Waymo’s existing fleet of modified Jaguar vehicles.
In terms of market presence, Waymo stands out as the only company currently operating commercial robotaxi services in multiple major metropolitan areas in the United States. The service has gained particular traction among women concerned about safety when riding with unknown human drivers.
Looking ahead, Waymo plans to test its vehicles in more challenging weather conditions, including northern California, upstate New York, and Michigan. This expansion into varied climates represents a crucial step toward offering services beyond the sunbelt region.
The company’s growth comes amid increased competition in the autonomous vehicle sector. Tesla recently announced plans for its own driverless ride-hailing service in Texas and California, though its vehicles still require human drivers.
Waymo’s approach to safety has shown promising results, with company data indicating lower crash rates compared to human drivers. However, the service has experienced occasional issues, including software recalls and minor traffic incidents.
The funding announcement had a positive impact on Alphabet’s stock, which rose 1.5% to $165.10 during trading on Friday in New York.
Industry analysts suggest this funding round could position Waymo for a future public listing, potentially following other autonomous vehicle companies like WeRide, which recently debuted on Nasdaq.
The autonomous vehicle industry continues to evolve, with Waymo maintaining its position as a leading player through consistent expansion and technological development.
While regulatory challenges remain a consideration for the industry’s growth, Waymo’s substantial funding and established market presence position it strongly in the competitive autonomous driving landscape.
Stock movements and market response indicate continued investor confidence in Waymo’s business model and growth strategy.
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