Waymo has secured $5.6 billion to expand its robotaxis to more cities.
A great show of confidence in the robotaxi company.
Waymo has closed a $5.6 billion funding round, marking its largest raise to date. The company will use these funds to boost its robotaxi business in current markets such as San Francisco, Los Angeles, and Phoenix, and expand into new cities like Austin and Atlanta, where its vehicles will be available exclusively through the Uber app.
Additionally, Waymo has suggested future "commercial applications" for its "Waymo Driver" technology, which includes the hardware and software that enable the autonomous driving of its vehicles. These applications could encompass food and package deliveries, freight transportation, and even personally-owned autonomous vehicles, areas the company has previously explored.
The funding round was led by Alphabet, Waymo's parent company, and included participation from investors such as Andreessen Horowitz, Fidelity, Perry Creek, Silver Lake, Tiger Global, and T. Rowe Price. Participants praised Waymo for its technological advancements, commitment to safety, and the superior experience offered by its product. "The company has built the safest and best product in the autonomous vehicle ecosystem," said Chase Coleman, founder of Tiger Global.
With this Series C round, Waymo has raised a total of $11.1 billion, following previous rounds of $3 billion and $2.5 billion. Ruth Porat, CFO of Alphabet, commented earlier this year that the company would invest $5 billion in the autonomous driving unit over several years. Despite several competitors testing autonomous vehicles on public roads, Waymo stands out almost alone by offering a commercial service to customers. Its autonomous vehicles have driven over 25 million miles to date, and in August, they announced they had surpassed 100,000 weekly rides for customers.
However, Waymo continues to be a company operating at a loss. Alphabet's "Other Bets" division, which includes Waymo, generated $365 million in revenue during the second quarter of the year, an increase from $285 million in the second quarter of 2023. Despite this revenue growth, the division recorded an operating loss of $1.1 billion, up from the $813 million lost in 2023. Alphabet is expected to announce its third-quarter results on October 29.
Waymo plans to launch robotaxi operations in Atlanta and Austin in 2025, where its vehicles will be exclusively available on the Uber app. Additionally, it has begun testing routes in San Francisco and Phoenix that utilize highways, aiming to improve its service for a larger number of customers. It is also evaluating different weather conditions and complex urban environments in Buffalo, New York, and Washington, D.C.
