Alphabet is investing $5 bn in its self-driving car unit, Waymo. This funding will help Waymo build the world’s leading autonomous driving company, said Alphabet’s outgoing finance chief Ruth Porat. She noted Waymo as an “important example” of Alphabet’s long-term investments.
Waymo, a self-driving car unit, aims to revolutionize transportation with autonomous vehicles. Originating from Google’s self-driving car project in 2009, Waymo became a separate entity under Alphabet in 2016.
The company focuses on developing technology to make roads safer and transportation more accessible (see How Technologies Will Shape the Future of Autonomous Mobility & Insurance?).
Waymo’s vehicles use a combination of sensors, cameras, and advanced software to navigate and make real-time decisions. They have logged millions of miles on public roads and in simulated environments.
Waymo One, the company’s ride-hailing service, operates in select cities, offering the public a glimpse into the future of transportation.
Waymo’s mission includes continuous improvement of autonomous driving technology, aiming to reduce traffic accidents and enhance mobility for all.
Alphabet’s “Other Bets” unit, which includes Waymo, reported $365 mn in quarterly revenue, up from $285 mn a year ago. However, losses increased to $1.13 bn from $813 mn in the same period.
Alphabet’s CEO Sundar Pichai stated that Waymo provides 50,000 weekly paid trips, mainly in San Francisco and Phoenix, and has completed 2 mn trips to date. In June, Waymo removed the waitlist and opened rides to all San Francisco users.
The unit raised $2.25 bn in its first external funding round in 2020 and another $2.5 bn in 2021, with investors including Andreessen Horowitz, AutoNation, Canada Pension Plan Investment Board, and Fidelity Management & Research Company.
Alphabet’s increased investment in Waymo follows General Motors’ autonomous vehicle unit Cruise delaying the production of the Origin, a self-driving shuttle for cities. Tesla also postponed its CyberCab robotaxi unveiling from August to October.
“Alphabet has committed up to $5 bn to Waymo,” Waymo CEO Tekedra Mawakana said. “We appreciate their immense vote of confidence in our team and the progress we’ve made with our technology, product, and commercialization efforts.”
