Waymo, Alphabet’s self-driving subsidiary, announced on Friday that it raised $5.6 billion in funding led by Google’s parent company. The company aims to grow its autonomous ride-hailing services with this boost.
Many automakers and tech companies are investing in autonomous ride-hailing, hoping to turn it into a profitable venture despite public doubts and strict regulations.
Existing investors such as Andreessen Horowitz, Fidelity, Perry Creek, Silver Lake, Tiger Global, and T. Rowe Price also contributed to this funding round, Waymo shared.
“With this latest investment, we will continue to welcome more riders into our Waymo One ride-hailing service in San Francisco, Phoenix, and Los Angeles, as well as in Austin and Atlanta through our expanded partnership with Uber,” the company said.
Alphabet had previously planned a $5 billion investment for Waymo over several years, as finance chief Ruth Porat noted in July.
Currently, Waymo provides paid autonomous rides in areas like the Bay Area, Los Angeles, and Phoenix, Arizona. The company spent years testing and logging miles before receiving its first ride-hailing permit in 2022 from the California Public Utilities Commission.
Tesla’s CEO, Elon Musk, announced on Wednesday that the electric vehicle company plans to launch driverless ride-hailing services in California and Texas next year.
General Motors’ Cruise is testing vehicles with safety drivers after a recent accident, requiring it to remove its cars from the road temporarily. Amazon’s Zoox, meanwhile, is expanding tests with its steering wheel- and pedal-free vehicles.
