Market Analysis

Alphabet Teases Future of Personal Ownership for Waymo Robotaxis

Mellissa · 5d47.9K Views

Image Credit: Reuters

Alphabet's Waymo self-driving taxis could be available for personal ownership in the future, CEO Sundar Pichai revealed on Thursday, as Tesla prepares to launch its own robotaxi service in the U.S. this year.

Waymo, which started as a small self-driving project within Google in 2009 and spun out into its own entity seven years later, has steadily expanded in the challenging autonomous vehicle sector, which has seen several setbacks due to high investment costs, regulatory hurdles, and technological challenges. With a fleet of over 700 vehicles, including 300 in San Francisco, Waymo is the only U.S. company running uncrewed robotaxis that charge passengers.

During a post-earnings conference call, Pichai did not provide specifics on the timeline or details of how Waymo might sell vehicles, but he mentioned that "there is future optionality for personal ownership."

Tesla CEO Elon Musk recently pointed out the higher cost of Waymo vehicles compared to Tesla’s. Waymo's cars use a combination of cameras and costly sensors like lidar to create a 3D map of the road for added safety, while Tesla relies solely on cameras and artificial intelligence, helping keep costs lower. Musk claimed that a Tesla costs only about a quarter of a Waymo car, thanks to its high-volume production.

Musk has placed a large bet on robotaxis for Tesla’s future, stating that owners will eventually be able to generate income by listing their cars on a ride-hailing app. Tesla aims to roll out a robotaxi service in several U.S. states this year, although experts consider this goal ambitious due to the technological challenges, especially in adverse weather conditions and complex driving scenarios.

Meanwhile, rival Cruise, a subsidiary of General Motors, shut down last year after a major accident that prompted a federal investigation and led to a small criminal fine.

Tesla's robotaxis would place crash liability on the company itself, whereas Tesla has previously blamed its customers for accidents involving its Autopilot and Full Self-Driving (FSD) systems, stressing that drivers must remain ready to take control.

Tesla reaffirmed its June target for launching a paid robotaxi service in Austin, Texas, where regulations are lighter. It also plans to expand to California and other states.

Waymo, which has been testing its technology for years, is now focusing on expanding through partnerships with companies like Uber, Moove, and automakers like Hyundai, Zeekr, and Jaguar. According to analyst David Heger, Waymo is likely to offer personal ownership through such partnerships, as Google does not manufacture its own cars.

While Waymo's self-driving division represents only a small part of Alphabet's overall value, the company has reported running over 250,000 fully autonomous paid rides weekly. Waymo operates in San Francisco, Phoenix, Los Angeles, and Austin, with plans to expand to Atlanta, Miami, and Washington, D.C.

Pichai’s comments came in response to an analyst’s question about Waymo’s future, with him humorously noting, "This is probably the first question I've got on an earnings call on Waymo. It's a sign of its progress."