Waymo Secures $5.6 Billion in Funding, Marks Significant Milestones in Autonomous Vehicle Deployment

Alphabet‘s self-driving unit, Waymo, has closed a substantial $5.6 billion funding round, highlighting the escalating competition in the autonomous vehicle sector. This funding is expected to bolster Waymo’s efforts in expanding its robotaxi services across the United States.

According to recent data, Waymo has achieved a total of 25.3 million miles driven as of July 2024, representing a 9% month-over-month increase from June. This rapid growth aligns with projections by analysts at Morgan Stanley, who have been closely monitoring the company’s progress. The data also reveals varied performance in different cities, with San Francisco and Austin showing better-than-expected results, while Phoenix and Los Angeles experienced slower growth.

The monthly reporting of these metrics is seen as crucial for gaining insights into the scaling and adoption of Level 4 autonomous vehicles. Morgan Stanley noted that this reporting rhythm provides valuable insights into the pace of L4 autonomous adoption and could prompt investors to reevaluate Google‘s valuation, suggesting that Waymo’s value within Google’s stock price could be significantly higher than currently attributed.

The expansion of Waymo’s services is expected to have strategic implications for companies like Uber and Lyft, as the increasing presence of robotaxis could shift the competitive landscape in the ride-hailing sector. Analysts are keenly watching Waymo’s ability to demonstrate sustainable unit economics as it rolls out its autonomous services.

In addition to its operational milestones, Waymo has also faced some public scrutiny. A recent incident in Tempe, Arizona, captured on video, showed a Waymo vehicle appearing to hesitate as it turned onto a road with oncoming traffic. Despite the alarming footage, a Waymo spokesperson assured that the vehicle maintained a safe distance from other vehicles at all times.