Alphabet commits to $5B multi-year investment into Waymo

Alphabet CFO Ruth Porat said the company is committing to a multi-year investment of up to $5 billion to Waymo during its Q224 earnings call Tuesday. Despite facing struggles last year, GM also invested $850 million more into its self-driving unit, Cruise, last month.

“With regard to other bets, we continue to focus on improving overall efficiencies as we invest for long-term returns. Waymo is an important example of this, with its technical leadership coupled with progress on operational performance,” Porat explained, “As you will see in the 10 Q, we have chosen to commit to a new multi-year investment of $5 billion. This new round of funding, which is consistent with recent annual investment levels, will enable Waymo to continue to build the world’s leading autonomous driving technology company.”

Alphabet has committed up to $5B to @Waymo. We are grateful for their immense vote of confidence in our team and recognizing the amazing progress we’ve made with our technology, product, and commercialization efforts.

— Tekedra N Mawakana (@TechTekedra) July 23, 2024

“Dmitri Dolgov & I are so proud to work alongside the amazing team at Waymo every day on our mission to be the world’s most trusted driver,” Tekedra Mawakana, a co-CEO of Waymo, wrote on X. 

“Thank you Alphabet, Waymonauts, and, thank you Waymo One riders! This is a testament to the milestones we’ve reached together and the many more to come as we improve road safety and advance the World’s Most Experienced Driver. Cheers!” Dmitri Dolgov, co-CEO of Waymo, wrote on X. 

The Mountain View, Calif-based company currently runs commercial, fully autonomous robotaxi operations in San Francisco, Calif., Phoenix, Ariz., and Los Angeles, Calif. It is also testing its technology in Austin, Texas. Last month, it ended its waitlist in San Francisco, allowing anyone in the city to hail a robotaxi using its app.

Waymo was also a 2023 RBR50 Innovation Award winner, spotlighting its continued leadership in the robotaxi market.

The investment also comes as robotaxis are facing fewer potential legal hurdles in California. Last month, California Sen. Dave Cortese withdrew Senate Bill (SB) 915 from consideration. SB 915 would have allowed local municipalities to restrict and tax autonomous vehicle (AV) companies, similar to how taxicab companies are regulated in the state. 

Waymo hits milestones and road bumps

So far this year, Waymo has expanded its service areas in Phoenix, launched its service in Los Angeles, and ended its waitlist in San Francisco. In Phoenix, the company has added 90 square miles (233 sq. km) to what was already its largest service area in metropolitan Phoenix. Waymo said that its riders can enjoy Waymo One service across 315 square miles (815.8 sq. km) of the Valley. The expanded service area reaches further into North Phoenix and as far as Desert Ridge. 

Less than two weeks after receiving approval to expand to Los Angeles, Waymo opened its driverless robotaxi service to select members of the public in LA. Waymo also said it will roll out a fully driverless robotaxi service in Austin, Texas later in 2024.

In LA, Waymo said it offers rides 24 hours a day, 7 days a week in a 63-square-mile area from Santa Monica to Downtown LA. Waymo plans to scale the area over time, a similar approach it’s taken in both Phoenix and San Francisco. The rides in LA will initially be free, but it said it will transition to paid rides in the coming weeks. The company said there will be 50 robotaxis in the LA fleet.

The company has hit bumps in the road this year as well. In June, Waymo issued a voluntary software recall for all of its 672 robotaxis after one autonomously drove into a telephone pole in Phoenix last month. This was Waymo’s second-ever recall.

After completing the software update, the company filed the recall with the National Highway Traffic Safety Administration (NHTSA). Waymo said this update corrects an error in the software that “assigns a low damage score” to the telephone pole. In addition, it updates the company’s map so its vehicles can better account for the hard road edge in the alleyway that was previously not included.

Waymo’s engineers deployed the recall at its central depot to which its robotaxis regularly return for maintenance and testing. It was not an over-the-air software update.

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