Alphabet's Waymo Considers Personal Ownership of Robotaxis, Challenging Tesla's Autonomous Vehicle Strategy

Alphabet says Waymo may offer robotaxis for personal ownership in future

SAN FRANCISCO, April 24 (Reuters) - Alphabet's (GOOGL.O), opens new tab Waymo self-driving taxis may be available for people to own in the future, CEO Sundar Pichai said on Thursday, just as electric vehicle maker Tesla (TSLA.O), opens new tab gears up to roll out robotaxis this year in the United States. Waymo, which started as a small self-driving project in 2009 and spun out of Google seven years later, has expanded slowly but steadily in a tricky autonomous vehicle market that has witnessed several casualties due to soaring investment, tight regulatory requirements and tough technological hurdles. With more than 700 vehicles in its fleet - 300 of which operate in San Francisco - Waymo is the only U.S. firm that runs uncrewed robotaxis that collect fares. Pichai, on a post-earnings conference call, did not provide a timeline or any detail on how it plans to sell Waymo vehicles, beyond saying "there is future optionality for personal ownership." Tesla CEO Elon Musk recently commented on the higher cost of Waymo cars compared with Tesla's. Waymo's vehicles use a combination of cameras and expensive sensors such as lidar to create a three-dimensional map of the road, adding redundancy to increase safety. In contrast, Tesla depends only on camera vision and artificial intelligence, which allows it to keep costs in check. "Teslas probably cost a quarter, 20%, of what a Waymo costs and made in very high volume," Musk said after Tesla earnings on Tuesday. "I don't see anyone being able to compete with Tesla at present." Musk has bet Tesla's future on robotaxis, and has said owners will eventually be able to make money by listing their vehicles on a ride-hailing app. The company aims to launch a robotaxi service in several U.S. states this year, a target that autonomy experts have called ambitious given the difficulty the technology has in responding to scenarios such as inclement weather, complex intersections and pedestrian behavior. Rival Cruise, a unit of General Motors (GM.N), opens new tab, shut shop last year following a major accident that led to a federal investigation and a small criminal fine. Tesla has long blamed its customers for accidents involving the driver-assistance systems it calls Autopilot and Full Self-Driving (FSD), noting that it warns Tesla owners to stay ready to take over driving. Its robotaxis would place crash liability squarely on Tesla. On Tuesday, Tesla stuck to its previously announced June timeline for launching a paid robotaxi service in Austin, Texas, where it faces minimal regulation. It also has plans to launch in California and some other U.S. states. GROWING THROUGH PARTNERSHIPS Waymo, which has tested its technology for years, is now focusing on growing its presence through partnerships with companies such as ride-hailing firm Uber (UBER.N), opens new tab, fleet operator Moove and automakers Hyundai (005380.KS), opens new tab, Zeekr (ZK.N), opens new tab and Jaguar. Waymo would likely offer personal ownership of its robotaxis through a partnership model, said David Heger, an analyst at Edward Jones. "Google doesn't build its own automobiles and I certainly don't think they would try to get into that business," he said. Though the unit accounts for only a fraction of Alphabet's valuation, Waymo has said it was running more than 250,000 fully autonomous paid rides a week. It operates in San Francisco, Phoenix, Los Angeles and Austin and plans to start in Atlanta, Miami and Washington, D.C. Pichai's comments were in response to an analyst's question about Waymo's future. "This is probably the first question I've got on an earnings call on Waymo," Pichai joked. "It's a sign of its progress." Reporting by Abhirup Roy in San Francisco and Deborah Mary Sophia in Bengaluru; Additional reporting by Kenrick Cai in San Francisco; Editing by Sayantani Ghosh and Jacqueline Wong Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Autos & TransportationADAS, AV & SafetySoftware-Defined VehicleEV BatterySustainable & EV Supply Chain

Waymo Might Sell You A Robotaxi One Day

This decade will likely go down in history as the one where electric vehicles truly took off. Now, as automakers sow the seeds for self-driving cars, the next decade could be the era of the robotaxi. And no, they probably won't be limited to fleets and ride-hailing services. Personal self-driving cars are very much on the table. Tesla says they're coming. Alphabet, Waymo's parent company, is also suggesting as much. Welcome to the Friday edition of Critical Materials, your daily round-up of news and events shaping the world of electric cars and technology. Also on the radar today: Tesla CEO Elon Musk may have scored a win as the Trump administration announced looser regulations for autonomous vehicles. And Volkswagen jumps on the extended-range electric vehicle (EREV) bandwagon after showcasing the ID. Era at Auto Shanghai. It plans to develop its own EREV powertrain for Europe. Waymo has come a long way. It started as a small autonomous vehicle (AV) project under Google in 2009. In 2017, it first started testing a fleet of Chrysler Pacifica minivans in Phoenix, Arizona, before launching a commercial service for the public the following year. It then expanded to San Francisco in 2021 with the Jaguar I-Pace electric crossover retrofitted with radars, LiDAR and cameras. These cars are now in L.A. and Austin, with Atlanta and Washington D.C. coming soon. There were regulatory hurdles, safety investigations and also accidents, but Alphabet continued investing in Waymo to maintain its lead. And the fleet is growing fast -- Waymo is already operating 700 robotaxis in the U.S., of which 300 are in San Francisco alone. Now Alphabet could help drive its sales further, especially if it's outfitted with cutting-edge self-driving hardware and software. Sundar Pichai, the CEO of Alphabet, said in Thursday's earnings call that the tech giant is considering offering Waymos as personal vehicles. Here's more from Reuters: Pichai, on a post-earnings conference call, did not provide a timeline or any detail on how it plans to sell Waymo vehicles, beyond saying "there is future optionality for personal ownership." Waymo would likely offer personal ownership of its robotaxis through a partnership model, said David Heger, an analyst at Edward Jones. "Google doesn't build its own automobiles and I certainly don't think they would try to get into that business," he said. Pichai's comments were in response to an analyst's question about Waymo's future. "This is probably the first question I've got on an earnings call on Waymo," Pichai joked. "It's a sign of its progress." Tesla CEO Elon Musk has promised for years that personal Teslas will become autonomous in the near future. Owners could offer them as robotaxis -- like a combination of AirBnb and Uber. When they don't need their vehicles, they could earn money from this unique business model with Tesla getting a cut from the earnings. That's nowhere close to happening -- Tesla's rollout of the robotaxi ride-hailing service is yet to begin. For years, Musk has promised things that aren't even remotely close to existence, amassing support with just promises, government interest and investor enthusiasm. Those promises oftentimes are fulfilled, albeit with years-long delays. Will Waymo's robotaxi-for-everyone ambitions come to fruition? The company's scope and scale of robotaxis as personal vehicles is unclear as of now. Musk even joked on Tesla's earnings call on Tuesday, saying Waymo AVs with their expensive autonomous driving hardware are "waymo expensive" than Tesla's relatively lower-cost approach that ditches radar and lidar for cameras and artificial intelligence. For now, we'll have to wait and see. Regardless of the approach AV companies undertake, the speed of deployment depends on regulatory approvals and certification from the National Highway Traffic Safety Administration (NHTSA). With the agency firmly under the grip of the Trump administration, Musk may have a reason to rejoice. NHTSA's revised rules will allow some AVs to operate on U.S. roads that don't comply with federal safety standards -- like having a rearview mirror for example, according to Reuters. Reporting for less severe crashes will now be monthly and some AVs will be exempt from safety requirements. Here's more from the Reuters report: U.S. Transportation Secretary Sean Duffy said the new framework to boost autonomous vehicles would help U.S. automakers compete with Chinese rivals. "This administration understands that we're in a race with China to out-innovate, and the stakes couldn't be higher," Duffy said. "Our new framework will slash red tape." Advocates for Highway and Auto Safety said it was disappointed that the U.S. Department of Transportation "chose to dilute, instead of enhance, the reporting requirements." The Alliance for Automotive Innovation, a trade group representing nearly all major automakers, praised the USDOT. The industry has "been hamstrung by government inaction ... This announcement shows the administration is also proceeding with a sense of urgency, so we don't cede AV leadership to China and other countries," it said. EV and AV-related programs draw mixed reactions in the U.S. Support depends on who you ask and what their stakes are in the process. That said, it's true that the U.S. risks losing the AV race to China due to regulatory red tape. But the sentiment regarding AVs and advanced driver assistance systems was greatly diluted at this week's Shanghai Auto Show. A Xiaomi SU7 driving with its ADAS activated was involved in a fatal crash, killing three young female passengers in China in late March. Now it will be worth keeping an eye on how AV companies balance public safety and tech advancements in the future. Volkswagen smoked Tesla to become Europe's best-selling EV maker in the first quarter of this year. While the comeback is good news for the brand whose profits are tanking and EV sales struggling to take off, VW's real competition is in China, where local players have eaten into its market share. EREVs are already a growing segment in China and the automaker is now eyeing that segment. It showcased the ID. ERA concept at Auto Shanghai, an extended range EV VW developed with its group partner SAIC. A production version of that is expected to be VW's first EREV model in China. VW claims an EV-only range of 186 miles on the ID. ERA, plus an additional 435 miles with the gas generator. EREVs use combustion engines as generators to charge the high-voltage battery. But the engine is not connected to the wheels, only the electric motors are. So in theory, EREVs offer the best of both worlds -- gas and electric. The Waymo vehicles are expensive, with their cost potentially in six figures. But it's also true that LiDAR costs are coming down. At some point in the future they could be democratized. If these cars become cheaper, pass safety tests and are given regulatory approvals, would you consider buying one? What do you think are the pros and cons of having AVs as personal vehicles? Leave your thoughts in the comments.

Alphabet says Waymo may offer robotaxis for personal ownership in future

Alphabet CEO Sundar Pichai hinted at future personal ownership of Waymo robotaxis, as Tesla readies its own fleet. Despite high costs, Waymo leads US uncrewed fare-collecting rides. With strategic partnerships and expansion plans, it competes with Tesla's low-cost, AI-based approach to autonomous driving.Alphabet's Waymo self-driving taxis may be available for people to own in the future, CEO Sundar Pichai said on Thursday, just as electric vehicle maker Tesla gears up to roll out robotaxis this year in the United States. Waymo, which started as a small self-driving project in 2009 and spun out of Google seven years later, has expanded slowly but steadily in a tricky autonomous vehicle market that has witnessed several casualties due to soaring investment, tight regulatory requirements and tough technological hurdles. With more than 700 vehicles in its fleet - 300 of which operate in San Francisco - Waymo is the only U.S. firm that runs uncrewed robotaxis that collect fares. Pichai, on a post-earnings conference call, did not provide a timeline or any detail on how it plans to sell Waymo vehicles, beyond saying "there is future optionality for personal ownership." Tesla CEO Elon Musk recently commented on the higher cost of Waymo cars compared with Tesla's. Waymo's vehicles use a combination of cameras and expensive sensors such as lidar to create a three-dimensional map of the road, adding redundancy to increase safety. In contrast, Tesla depends only on camera vision and artificial intelligence, which allows it to keep costs in check. "Teslas probably cost a quarter, 20%, of what a Waymo costs and made in very high volume," Musk said after Tesla earnings on Tuesday. "I don't see anyone being able to compete with Tesla at present." Musk has bet Tesla's future on robotaxis, and has said owners will eventually be able to make money by listing their vehicles on a ride-hailing app. The company aims to launch a robotaxi service in several U.S. states this year, a target that autonomy experts have called ambitious given the difficulty the technology has in responding to scenarios such as inclement weather, complex intersections and pedestrian behavior. Rival Cruise, a unit of General Motors, shut shop last year following a major accident that led to a federal investigation and a small criminal fine. Tesla has long blamed its customers for accidents involving the driver-assistance systems it calls Autopilot and Full Self-Driving (FSD), noting that it warns Tesla owners to stay ready to take over driving. Its robotaxis would place crash liability squarely on Tesla. On Tuesday, Tesla stuck to its previously announced June timeline for launching a paid robotaxi service in Austin, Texas, where it faces minimal regulation. It also has plans to launch in California and some other U.S. states. Growing through partnerships Waymo, which has tested its technology for years, is now focusing on growing its presence through partnerships with companies such as ride-hailing firm Uber, fleet operator Moove and automakers Hyundai, Zeekr and Jaguar. Waymo would likely offer personal ownership of its robotaxis through a partnership model, said David Heger, an analyst at Edward Jones. "Google doesn't build its own automobiles and I certainly don't think they would try to get into that business," he said. Though the unit accounts for only a fraction of Alphabet's valuation, Waymo has said it was running more than 250,000 fully autonomous paid rides a week. It operates in San Francisco, Phoenix, Los Angeles and Austin and plans to start in Atlanta, Miami and Washington, D.C. Pichai's comments were in response to an analyst's question about Waymo's future. "This is probably the first question I've got on an earnings call on Waymo," Pichai joked. "It's a sign of its progress."

Google's Waymo self-driving robotaxis could be put on sale for people...

Waymo's self-driving robotaxis may be available for personal ownership in the future, Alphabet CEO Sundar Pichai said. The vehicles are currently the only driverless robotaxis that collect fares on rides in the US, operating a fleet of 700 vehicles, with the majority based in San Francisco. "There is future optionality for personal ownership," Pichai said during a post-earnings call on Thursday, though he did not provide a timeline or details on the potential sale price. Waymo's presence has been growing, completing more than 250,000 fully autonomous paid rides each week, according to Alphabet. The robotaxis are on the road in San Francisco, Phoenix, Los Angeles and Austin, with plans to expand to Atlanta, Miami and Washington, DC. "This is probably the first question I've gotten on an earnings call on Waymo," Pichai joked, after being asked about personal ownership. "It's a sign of progress." Google does not manufacture the vehicles itself, instead relying on partnerships with Uber, vehicle financing site Moove and major automakers like Hyundai, Jaguar and Chinese EV maker Zeekr. The futuristic driverless taxis rely on a combination of cameras and pricey LiDAR sensors to create maps of the road. Rival Tesla, which plans to launch a pilot robotaxi program in June, uses only cameras and artificial intelligence for its self-driving cars, allowing it to keep costs low - and competitors at bay, according to CEO Elon Musk. "Teslas probably cost a quarter, 20%, of what a Waymo costs and made in very high volume," Musk said on Tuesday during an earnings call. "I don't see anyone being able to compete with Tesla at present," he added. The robotaxi's launch in June, which is set to take place in Austin, Tex., will likely be limited, since it's just a pilot program to start. But Musk said a more widespread rollout of the taxis is coming soon. "I predict there will be millions of Teslas operating autonomously - fully autonomously - in the second half of next year," he said during the call. Tesla also aims to launch its robotaxi service in several other US states this year. Analysts have warned this could be a tall order, since its self-driving technology has struggled in more complex scenarios, like rough weather, tricky intersections and unpredictable pedestrian behavior. Musk's automaker will be dipping its toes into new legal waters with the robotaxis, since it has previously only dealt with partially autonomous driving. It has long blamed accidents involving its Autopilot and Full Self-Driving systems on drivers, arguing it warns them to stay alert and ready to take the wheel. Last December, General Motors exited its version of the fully autonomous vehicles, a money-losing business called Rival Cruise. The automaker paid a $500,000 criminal fine after it admitted to misleading federal investigators over a 2023 crash involving one of the self-driving vehicles.

Alphabet says Waymo may offer robotaxis for personal ownership in future

SAN FRANCISCO (Reuters) -Alphabet's Waymo self-driving taxis may be available for people to own in the future, CEO Sundar Pichai said on Thursday, just as electric vehicle maker Tesla gears up to roll out robotaxis this year in the United States. Waymo, which started as a small self-driving project in 2009 and spun out of Google seven years later, has expanded slowly but steadily in a tricky autonomous vehicle market that has witnessed several casualties due to soaring investment, tight regulatory requirements and tough technological hurdles. With more than 700 vehicles in its fleet - 300 of which operate in San Francisco - Waymo is the only U.S. firm that runs uncrewed robotaxis that collect fares. Pichai, on a post-earnings conference call, did not provide a timeline or any detail on how it plans to sell Waymo vehicles, beyond saying "there is future optionality for personal ownership." Tesla CEO Elon Musk recently commented on the higher cost of Waymo cars compared with Tesla's. Waymo's vehicles use a combination of cameras and expensive sensors such as lidar to create a three-dimensional map of the road, adding redundancy to increase safety. In contrast, Tesla depends only on camera vision and artificial intelligence, which allows it to keep costs in check. "Teslas probably cost a quarter, 20%, of what a Waymo costs and made in very high volume," Musk said after Tesla earnings on Tuesday. "I don't see anyone being able to compete with Tesla at present." Musk has bet Tesla's future on robotaxis, and has said owners will eventually be able to make money by listing their vehicles on a ride-hailing app. The company aims to launch a robotaxi service in several U.S. states this year, a target that autonomy experts have called ambitious given the difficulty the technology has in responding to scenarios such as inclement weather, complex intersections and pedestrian behavior. Rival Cruise, a unit of General Motors, shut shop last year following a major accident that led to a federal investigation and a small criminal fine. Tesla has long blamed its customers for accidents involving the driver-assistance systems it calls Autopilot and Full Self-Driving (FSD), noting that it warns Tesla owners to stay ready to take over driving. Its robotaxis would place crash liability squarely on Tesla. On Tuesday, Tesla stuck to its previously announced June timeline for launching a paid robotaxi service in Austin, Texas, where it faces minimal regulation. It also has plans to launch in California and some other U.S. states. GROWING THROUGH PARTNERSHIPS Waymo, which has tested its technology for years, is now focusing on growing its presence through partnerships with companies such as ride-hailing firm Uber, fleet operator Moove and automakers Hyundai, Zeekr and Jaguar. Waymo would likely offer personal ownership of its robotaxis through a partnership model, said David Heger, an analyst at Edward Jones. "Google doesn't build its own automobiles and I certainly don't think they would try to get into that business," he said. Though the unit accounts for only a fraction of Alphabet's valuation, Waymo has said it was running more than 250,000 fully autonomous paid rides a week. It operates in San Francisco, Phoenix, Los Angeles and Austin and plans to start in Atlanta, Miami and Washington, D.C. Pichai's comments were in response to an analyst's question about Waymo's future. "This is probably the first question I've got on an earnings call on Waymo," Pichai joked. "It's a sign of its progress." (Reporting by Abhirup Roy in San Francisco and Deborah Mary Sophia in Bengaluru; Additional reporting by Kenrick Cai in San Francisco; Editing by Sayantani Ghosh and Jacqueline Wong)