Waymo Is Giving 100,000 Robotaxi Rides Per Week – But Not Making Any Money

The Google-owned robotaxi service, Waymo, provides over 100,000 paid rides per week in San Francisco, Phoenix, and Los Angeles. The doubling of this key figure since May underscores its leadership in autonomous driving. Former Waymo CEO John Krafcik (now on Rivian’s board) observed that Waymo basically has no competitors because they have all fallen away.

While this has been a success, Waymo has a crucial problem: it isn’t making money yet. The operating loss of Google’s experimental division, which includes Waymo, amounted to about $2 billion in the first half of this year, with a significant contribution from Waymo. As investment research expert Mark Mahaney observed, profits have continued to elude the robotaxi leader. And indeed, the way to profits is far from certain and far off—especially given the enormous costs in this space.

A key disadvantage Waymo faces is the expense of its fleet. Unlike rideshare companies like Uber and Lyft, Waymo must supply its own vehicles, with specially-equipped self-driving Jaguars costing upwards of $100,000 each. Furthermore, expanding into new cities requires substantial investment in detailed mapping and research, slowing its growth and inflating costs.

However, Waymo is attempting to address these financial challenges. The introduction of its sixth-generation robotaxis, produced by Chinese EV automaker Zeekr, aims to reduce costs and improve profitability. Additionally, Google recently reinvested $5 billion into the company to support its ambitious expansion plans.

Unlike its rival Cruise, which encountered regulatory scrutiny and setbacks, Waymo has avoided significant PR catastrophes thanks to its conservative strategy. In order to become profitable in the future, Waymo will need to strategically focus on markets where there is a driver shortage or insufficient public transportation. As of the moment, the robotaxi sector is at a turning point, and even with Waymo’s apparent domination, its future is still unclear.