The Cost of Pioneering: Waymo’s Path Forward in Self-Driving Technology

Dear Automotive Enthusiasts,

In this seventh edition of the AutomotiveCOMPASS, we delve into Waymos advancements in autonomous driving, shedding light on the company’s role as a pioneer in this transformative technology. As autonomous vehicle (AV) innovation accelerates, Waymo stands at the forefront, showcasing groundbreaking progress in self-driving technology that reshapes the future of mobility. By analyzing Waymo’s strategies, achievements, and impact, we gain a clearer understanding of how this leader in AV innovation is setting new standards and navigating the complex challenges within the competitive landscape of global autonomous driving.

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?? Waymo’s Autonomous Expansion: Growth, Financials, and Future Plans

Waymo, Alphabet's pioneer in autonomous driving, is progressively expanding its operational footprint, experiencing rapid user growth along the way. However, scaling up robotaxi activities still requires significant investment, with an estimated current quarterly cash burn of around $1 billion US-Dollar. Here’s a look at Waymo’s latest advancements, growth metrics, and financial outlook.

?? Expansion and Milestones in 2024

• June 2024: Waymo launched unrestricted public access in San Francisco, significantly enhancing its presence. Operating areas in Phoenix and Los Angeles also expanded, broadening accessibility and user engagement.
• August 2024: The company reached a remarkable milestone, achieving 100,000 weekly autonomous rides—doubling its previous count of 50,000 weekly rides in May 2024.

?? Plans for Future Growth

Looking ahead, Waymo has ambitious plans to continue its expansion:

• 2025: New cities, including San José, Oakland, Fremont (East Bay), and Atlanta, are set for autonomous ride services.
• Uber Collaboration: Partnering with the Uber app, Waymo aims to widen its reach and simplify access to robotaxi services.
• New Production Facility: Waymo is establishing a production center in Mesa, Arizona, to ramp up vehicle production and support fleet expansion.

?? Financials and Investment Snapshot

Operating under Alphabet's "Other Bets," Waymo represents a major strategic investment with significant financial backing. Yet, these investments come with considerable losses:

• Historical Performance: From 2019 to 2023, "Other Bets" (which includes Waymo) generated cumulative revenue of $3 billion but incurred operational losses of $20 billion.
• Investments: Waymo has attracted notable investments over time, including $11.1 billion in Series C funding and $5.5 billion from earlier rounds. Additionally, a new $5 billion investment was announced in Q2 2024.

?? Mobility Industry Insights

For a deeper dive into the future of mobility services and successful strategies in this industry, download the Mobility Services Report 2024. It offers exclusive insights into evolving market dynamics and the success models of industry leaders like Uber.

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Best regards, Stefan Bratzel Director, Center of Automotive Management

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