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Alphabet’s autonomous driving division, Waymo, has successfully secured USD $5.6 billion in funding to enhance its robotaxi services across Los Angeles, San Francisco, and Phoenix, where it currently operates.
The investment round, part of a series C funding initiative, was spearheaded by Alphabet, the parent company of Google, alongside previous investors such as Andreessen Horowitz (a16z), Fidelity, Perry Creek, Silver Lake, Tiger Global, and T. Rowe Price.
Waymo co-CEOs Tekedra Mawakana and Dmitri Dolgov expressed that the funding would facilitate the expansion of their services and the advancement of the Waymo Driver for various business applications.
“With this latest investment, we will continue to welcome more riders into our Waymo One ride-hailing service in San Francisco, Phoenix, and Los Angeles, and in Austin and Atlanta through our expanded partnership with Uber,” they noted.
This latest round of funding elevates Waymo’s total capital raised to over USD $11 billion, following earlier rounds of USD $3.2 billion and USD $2.5 billion. In July, Alphabet’s CFO Ruth Porat revealed that the company would commit up to USD $5 billion in multiyear investments in Waymo.
While numerous companies are testing autonomous vehicles (AVs) on U.S. roads—including well-funded startups like Wayve—Waymo stands out as the only entity operating a commercial robotaxi service in several major metropolitan areas.
The service has gained traction among certain demographics, particularly women concerned about safety when riding with unknown human drivers. Parents have also utilised the service to transport their teenagers to school when other transit options seemed less secure or convenient.
Waymo currently facilitates over 100,000 weekly trips for passengers in Los Angeles, Phoenix, and San Francisco through its Waymo One app. Recently, the company partnered with Uber to introduce its robotaxi service in Austin, Texas—home to Tesla’s headquarters.
Waymo’s Competitors
Tesla CEO Elon Musk has made numerous promises regarding self-driving cars over the past decade. Recently, he announced that Tesla would launch a driverless ride-hailing service in Texas and California next year after upgrading the partially automated systems in its existing vehicles that still require human drivers.
Cruise, owned by GM, was previously Waymo’s closest competitor in the U.S., but it suspended operations following an incident in October 2023 where a pedestrian was dragged 20 feet by a Cruise AV after being struck by another vehicle first. Cruise is currently working on reinstating its service and plans to collaborate with Uber.
Waymo claims that its vehicles experience crashes “far less often than human drivers on public roads,” according to analysis by Timothy B. Lee, author of Understanding AI.
However, the company has initiated software recalls to improve the safety of its self-driving systems. There have been instances where its AVs blocked traffic or travelled against traffic flow; nonetheless, no fatalities or severe injuries have been reported.
The next-generation robotaxi from Waymo is based on a Geely Zeekr model equipped with custom sensors and AI “Driver.” Additionally, Waymo recently established a multiyear strategic partnership with Hyundai to incorporate the South Korean automaker’s Ioniq 5 electric vehicle into its robotaxi fleet.
In August 2024, Waymo announced plans to test its driverless vehicles under harsher winter conditions in northern California, upstate New York, and Michigan. The objective is to extend robotaxi services beyond warmer climates and eventually expand internationally.