Tuesday, August 28, 2018

We May Have to Remove A Zero From The Last Waymo Valuation (GOOG)

Following up on August 22's "This Valuation Says Google’s Waymo Unit Is Worth More Than Tesla" (GOOG).
From c|net's Road/Show:

Waymo's self-driving cars are far from perfect, report says
A new report from The Information claims the cars are causing frustration and aren't as capable as they appear.
Most stories about Waymo's self-driving efforts in Phoenix have been positive, but a new report claims that the pilot program isn't all flowers and sunshine.

Waymo's self-driving Chrysler Pacifica minivans are struggling to handle certain driving tasks and irking fellow drivers on the road, The Information reports. The outlet talked to a number of sources, some familiar with Waymo's business and some residents in the area where Waymo's vehicles operate. 

While many stories about the company's efforts are largely positive, these sources paint a different picture. Other drivers and residents complained that the cars stop for too long at stop signs and have trouble dealing with certain traffic situations, such as taking a left turn across a fast-moving road and merging into rush-hour highway traffic. They also allegedly stop and brake abruptly, confusing other drivers and causing traffic snarls.

"As the only company with a fleet of fully self-driving cars on public roads, our vehicles are continually learning and we've developed robust testing processes that will allow us to safely expand our vehicle's driverless capabilities over time," said a Waymo spokesman in an emailed statement. "Safety remains our highest priority as we test and deploy our technology." The company also told The Information that it has received plenty of feedback from local residents that will help the company continue to develop its autonomous-driving platform.

Given that Waymo's vehicles are still in development -- its Phoenix program is considered a pilot and not a fully-fledged rollout -- the cars are programmed to err on the conservative side. The vehicles will stop for a full 3 seconds at every stop sign, and it prefers wide berths when taking turns in traffic. It doesn't take more than a quick glance at any major four-way stop to see that human drivers cut more than a few corners that AVs don't. The Information's report also points out that Waymo's system has had trouble with drivers who take liberties with the rules of the road.

The trick, it appears, is striking that balance between being a perfect driver and being a driver that blends in. Standing out as a model student clearly doesn't recognize that this is not how a majority of drivers operate. While Waymo attempts to carve its own path to that end, other companies have different solutions. Mobileye, for example, relies on something it calls Responsibility-Sensitive Safety, which accepts that AVs do not exist in a bubble and, thus, must act at least somewhat like current drivers. Roadshow's Tim Stevens took a ride in Mobileye's development car, which went so far as to create a gap in traffic by slowly nudging into a lane until a human driver ceded their position....MORE
CNBC's headline is a blunt instrument:

'I hate them': Locals reportedly frustrated with Alphabet's self-driving cars

See also:
"Self-Driving Car Makers Prepare to Blame 'Jaywalkers'”

"Intel’s Mobileye wants to dominate driverless cars—but there’s a problem" (INTC; GOOG)