Waymo Expands Service Areas in San Francisco and Los Angeles

Waymo, the leading robotaxi company, has recently announced an expansion of its service areas in both San Francisco and Los Angeles. This move comes as the company aims to attract more customers and solidify its presence in these major cities. In San Francisco, Waymo is extending its service area south of the city into the San Francisco Peninsula, covering Daly City, Broadmoor, and Colma. This expansion adds a total of 10 additional square miles, bringing the total service area to 55 square miles. Meanwhile, in Los Angeles, Waymo is expanding into new neighborhoods such as Marina del Rey, Mar Vista, and Playa Vista, as well as adding more coverage in Hollywood, Chinatown, and Westwood.

Although the expansion of Waymo’s service areas may seem relatively small compared to traditional ride-hail services like Uber and Lyft, it is a significant milestone for the company. Waymo is focused on demonstrating its ability to grow rapidly in each new city it enters. The fact that Waymo is already expanding in Los Angeles, just a few months after launching in the city, is a clear sign of the company’s growing confidence in its driverless technology. This confidence is further underscored by the recent $5 billion commitment from parent company Alphabet, which is expected to fuel Waymo’s growth in the coming years.

While the exact revenue and losses for Waymo are not publicly disclosed, recent reports indicate that Alphabet’s “Other Bets” unit, which includes Waymo, generated $365 million in quarterly revenue. This is a significant increase from $285 million a year ago. However, the unit’s losses also widened to $1.13 billion from $813 million in the second quarter of 2023. Despite these losses, Waymo remains optimistic about its future growth prospects, buoyed by the ongoing support from Alphabet.

One major revenue stream that Waymo has yet to tap into is airport trips. While the company has been conducting airport rides at Phoenix Sky Harbor Airport since late 2022, it has not expanded its services to include airports in San Francisco or Los Angeles. Airports represent a lucrative market for robotaxi services, with airport trips accounting for approximately 20% of all human-driven ride-hail trips. However, airports also present unique challenges, such as complex road layouts and stringent regulatory requirements, which may pose obstacles for driverless vehicles.

Waymo’s expansion of service areas in San Francisco and Los Angeles marks a significant step forward for the company as it strives to establish itself as a leader in the autonomous vehicle industry. By demonstrating its ability to grow rapidly in new markets, Waymo is positioning itself for long-term success. Despite facing challenges and uncertainties, the company remains committed to innovation and progress in the field of self-driving technology.