Waymo is another of the ulti-multi-decacorns. In February they announced the completion of a $16 billion Series D financing round at a $126 billion post-money valuation.
From Bloomberg, July 24:
Alphabet Inc.’s Waymo is exploring options to exit its robotaxi partnership with Uber Technologies Inc., the latest relationship twist between two companies that have functioned as both rivals and partners.
Uber currently offers rides in autonomous Waymo vehicles on its platform exclusively in two US cities — Austin and Atlanta — after ending a more limited partnership in Phoenix last month. An Uber spokesperson said that Waymo has given notice that it plans to launch service through its own app in those cities in January 2028 “alongside their existing deployment with Uber.” This “would end Waymo’s exclusivity in Austin and Atlanta and allow us to launch with other AV providers in those cities, which we will be prepared to do,” the spokesperson added.
The current fleet of Waymo vehicles will remain on Uber’s platform through at least May 2028, the duration of the current contract, Uber said. The Financial Times Waymo explores split with Uber as robotaxi tensions deepen earlier that Waymo was exploring options for exiting the partnership.
“We believe in a vibrant and collaborative AV ecosystem that champions innovation and provides riders with a choice in how they experience this technology,” said a Waymo spokesperson. “This is essential to the industry’s future and to our vision of making the Waymo app and the safety of our technology available to riders everywhere.”
Shares of Uber slid 4.3%, closing Friday at $65.94 in New York, the lowest level in more than a year. Alphabet’s stock was up less than 1%.
The rift is a major setback for Uber, which has been developing partnerships with Waymo and fleet managers, and investing in other robotaxi companies in the hopes that it can one day be the go-to aggregator for driverless and human-operated rides. Waymo, the leading robotaxi provider in the US, also competes with Uber in key rideshare markets such as San Francisco and Los Angeles with its consumer app.
The absence of new developments from Uber and Waymo’s multiyear partnership has helped fuel anxiety about their relationship for months. Since launching the Atlanta service last June, Waymo hasn’t announced new cities where its vehicles will be available on the Uber app. Instead, the Alphabet unit has forged ahead with the standalone Waymo app and has launched in six more cities outside San Francisco and Los Angeles.
With almost every new Waymo announcement without Uber, Uber’s stock has taken a hit on fears that Waymo’s growth will eventually erode the ride-hail company’s business, which reported an annual profit for the first time only in 2023. Even as Uber has announced partnerships with other driverless car companies on planned service in the US, Middle East and Europe, Wall Street has remained unconvinced. The stock has fallen almost 20% so far this year....
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