Waymo, Alphabet’s autonomous vehicle division, has closed a significant $5.6 billion funding round to fuel the growth of its robotaxi service, primarily in the US, with plans for global expansion.
This latest Round C funding led by Alphabet included major investors such as Andreessen Horowitz, Silver Lake and Tiger Global, CNBC reported.
The investment will allow Waymo to expand its presence in major cities such as Los Angeles, San Francisco and Phoenix and advance technological advances in autonomous driving.
The funding round also highlights Waymo’s unique position as one of the few U.S. companies operating a commercial robotaxi service in multiple cities.
Focus on expanding the robotaxi service
Waymo co-CEOs Tekedra Mawakana and Dmitri Dolgov emphasized that this funding will expand their Waymo One robotaxi service in key US cities. In a statement to CNBC, the CEOs said:
With this latest investment, we will be able to welcome even more riders to our Waymo One ride-sharing service in San Francisco, Phoenix and Los Angeles, as well as in Austin and Atlanta through our expanded partnership with Uber.
The Round C funding brings Waymo’s total capital raised to $11.1 billion, after the company raised $3.2 billion and $2.5 billion, respectively, in two previous rounds.
Alphabet Chief Financial Officer Ruth Porat announced in July that the parent company would commit to a multi-year investment of up to $5 billion in Waymo.
Waymo is seeing steadily increasing demand for its robotaxi services.
The company’s vehicles currently make more than 100,000 trips weekly throughout Los Angeles, Phoenix and San Francisco, attracting a diverse range of riders – particularly women and parents – who prefer the increased safety that a self-driving vehicle offers.
The Waymo One app allows drivers to easily request these autonomous rides, making them increasingly popular in these cities.
Partnerships and competition in the AV landscape
Waymo’s rise is not without its challenges. Although Tesla and GM Cruise have both invested in AV technology, only Waymo is currently operating at scale in multiple metropolitan areas.
Cruise, Waymo’s biggest U.S. competitor, was forced to suspend operations in San Francisco after an accident in October 2023 but is working to restart service.
Waymo has recently expanded its reach through partnerships.
Waymo robotaxis have been launched in Austin, Texas, as part of an expanded agreement with Uber. Waymo is also working with automakers to add new vehicles to its fleet, including Hyundai’s Ioniq 5 electric car and Geely’s Zeekr, both equipped with customized AI “driver” sensors designed for improved navigation and passenger safety are.
Addressing security and regulatory challenges
Despite Waymo’s successes, public concerns remain.
According to a Pew Research Center survey, nearly two-thirds of U.S. respondents express reservations about using self-driving vehicles.
Security-related incidents have also caused a stir; There were traffic problems and minor collisions with Waymo’s autonomous vehicles, but these did not result in serious injuries.
Waymo has worked proactively to address these concerns.
The company said, based on publicly available data, that its vehicles crash far less often than human-driven cars.
In addition, Waymo has begun software updates to further improve the safety of its vehicles and is testing driverless operations in difficult weather conditions to prepare for expansion beyond the Sunbelt.
A vision for global expansion
Waymo’s ambitions extend beyond its current market.
The company said it will soon test its AV technology in colder climates, including Michigan and upstate New York, to demonstrate the versatility of its vehicles in harsher conditions.
Over time, Waymo hopes to expand internationally and benefit from the global growth of autonomous vehicle infrastructure.
Waymo has raised $11.1 billion in multiple funding rounds, giving it the resources it needs to advance the future of autonomous transportation. However, the company faces a complex regulatory and competitive environment.
As Waymo expands, it will continue to shape the future of mobility and pave the way toward safer and more accessible autonomous driving.
