Waymo, the self-driving robotaxi company, is making strides in expanding its service areas in both San Francisco and Los Angeles. In San Francisco, Waymo is extending its service area south into the San Francisco Peninsula, covering Daly City, Broadmoor, and Colma, adding 10 additional square miles to reach a total of 55 square miles. This expansion comes after Waymo eliminated its waiting list in San Francisco, allowing anyone within the service area who has downloaded the Waymo One app to access their 24/7 robotaxi service. In Los Angeles, Waymo is also growing its service area by adding new neighborhoods such as Marina del Rey, Mar Vista, and Playa Vista, as well as expanding to areas like Hollywood, Chinatown, and Westwood.
While the expansion of Waymo’s service areas may seem small compared to traditional ridehail services like Uber and Lyft, it is a significant step for the company. Waymo is focused on proving its ability to grow rapidly in each new city it enters. The recent expansion in Los Angeles, despite only launching there a few months ago, signals the company’s growing confidence in its driverless vehicle technology. Additionally, Waymo’s parent company, Alphabet, recently committed $5 billion to support its growth in the coming years.
Despite the growth in service areas and the backing from Alphabet, the financial performance of Waymo remains a mystery. While Alphabet’s “Other Bets” unit, which includes Waymo, reported $365 million in quarterly revenue, the losses widened to $1.13 billion. This raises questions about the profitability of Waymo’s operations and its long-term sustainability. The company’s expansion into new cities and service areas may be a strategy to increase revenue and close the gap on its losses.
One area where Waymo has yet to tap into is airport trips at major airports like SFO and LAX. While the company has been conducting airport trips at Phoenix Sky Harbor Airport since 2022, it has not ventured into the airport markets of San Francisco and Los Angeles. Airports represent a significant revenue opportunity for robotaxi services, with airport trips accounting for a large portion of traditional ridehail car trips. However, the complexities of navigating airports and convincing regulators of the safety and efficiency of driverless vehicles pose challenges for companies like Waymo.
Waymo’s expansion of its service areas in San Francisco and Los Angeles marks a positive step towards growth and market penetration. The company’s focus on rapidly expanding into new cities and neighborhoods demonstrates its commitment to establishing a foothold in the autonomous vehicle industry. However, challenges remain in terms of financial performance, profitability, and entering key markets such as airports. Only time will tell if Waymo’s bold expansion strategy will pay off in the long run.
Leave a Reply