Waymo's Ride-Hailing Service: Economics, Safety, and Future Plans

Waymo aims to enhance road safety by providing accessible, fully autonomous rides without requiring a driver's license.

### Waymo's Progress in Autonomous Rides and Safety Initiatives
* 🚗 Waymo has achieved **over 100,000 rides per week** across cities like San Francisco, Phoenix, and Los Angeles, with varying average distances and purposes for rides, such as **connecting to public transit** or **running errands**.
* 📊 In San Francisco, approximately **36% of users** utilize the service to link with transit, typically traveling around **three miles** for these connections.
* 🛡 Waymo operates as a premium service, focusing on **consistency and safety**, which is reflected in the fare structure that customers are willing to pay.
* ✈ The company has successfully established **24/7 curbside pickup** at Phoenix Sky Harbor Airport and is working closely with SFO officials to implement similar services at **San Francisco International Airport**.
* 🔍 Waymo prides itself on its **safety culture and transparency**, recently launching a **safety hub to share data with the public**, showcasing **improvements in road safety metrics**.
* 💰 Backed by a significant **$5 billion investment** from Alphabet, Waymo is focused on **scaling its technology** while **reducing operational costs** through innovative approaches like their **sixth-generation driver**.
* 🤝 Despite changes in leadership, Waymo maintains a strong relationship with Alphabet's executives, ensuring **continued support for its strategic goals**.
* 🚦 Waymo's unique approach to autonomous driving emphasizes **removing the human element from the equation**, expanding mobility access for those **without driver's licenses** and prioritizing safety through **level four technology**.

When we said you were coming on the show, lots of people had very sort of granular questions about the paid rides. So let's start that. Know, what is the average distance taken, the average fare per ride? And a bit more about the economics of what you've achieved. Yeah, thank you so much and for having me. And I would love to hear more about your experience because I've been watching your social engagement like so many of our riders. So you said it. You know, we've reached over 100,000 rides per week across San Francisco, Phoenix, and Los Angeles. Those are the distances that people travel and how they're using the service vary wildly between those locations. In San Francisco, we're finding that like 36% of people are actually using the service to connect with transit, you know, which is really surprising for us. So that's like depending on where they are in the city, it could be like about a three-mile ride to get to a transit or

to get to work. Other people are using it to run errands and to doctor's appointments. So it really depends. And when you talk about the economics, you know, we're a premium service. And so people are, you know, paying for the consistency and the safety of the Waymo driver in the Waymo one service under the sort of co-CEO model. You're really focused on the commercialization of what Waymo has been doing for quite a long time. And just going back to what you just said, yeah, I use Waymo often. I also use Tesla's FSD Supervised and was using Cruise. And you know, the experience is interesting, but I'm trying to think about how I would use it in the course of my normal life. And for me, SFO is a big thing. So when am I going to be able to go down to SFO in a Waymo from here on Pier three Embarcadero? And what's the progress you're making

there? Yeah. So, you know, when we launched in Phoenix, one of the early, early engagements was with the Phoenix Sky Harbor Airport. And so now we offer 24/7 pick up at the curbside there. You know, it's a process. We were the first autonomous vehicle company to receive FAA approval to be able to do that kind of pickup. And so we're deeply engaged with SFO officials so that we can do exactly that kind of pick up. The other thing that we're also deeply engaged in with our employees right now is fully autonomous rides on freeways because, you know, people want to take trips to and from the airport and they want to do it on freeways. And so we have that going in Phoenix. We have it also in San Francisco with our employees right now. And both of those are really critical unlocks for us. And we're really focused on it right now. And, you know, doing everything with

safety at the center of how we move. It's iterative, it's deliberate, and it takes what it takes to get it right. Let's dwell on that safety. TAKEDA And thank you for joining us today because S&P actually kudos to you calling out Waymo as the front runner in the field of EVs in the United States. But they do say challenges remain, including an ongoing investigation from the National Highway Traffic Safety Administration. How are you discussing that? How are you looking at your safety data? So we're really, really proud. I mean, we, you know, founded in 2009 as the Google self-driving car project. Our company culture is built around safety, and it's built around the transparency of our safety. You know, there's not one measure of safety. So we've built a lot of measures and a lot of transparency. And last week we launched the safety hub, and we're the only company that's sort of putting all of our data out

there for academics, the media, everyone to engage with it and understand why it is that we know that we are through the data. Improving road safety just had some of the stats up, right? Like reducing the number of airbag deployments, injury-causing crashes. I mean, this is why we exist, right? Level four technology should make the roads safer for humans, for pedestrians, for cyclists, vulnerable road users. And we're showing that that's the case. But we're still, with the investigation, engaging, demonstrating that, you know, engaging at every level of government is what you have to do when you're the first to do this. No one's reached this level of scale. And so we understand it has a role to play. And we also have a role to play in being very transparent. And for that, you need money. And luckily, you got a large amount of it, 5 billion coming from Alphabet.

Just tell us about the investment needs, the focus of that. S&P again calling out the need for this sort of capital investment to drive the US forward. Yeah. So super fortunate to be backed by Alphabet as well as our other external investors. You know, we're laser-focused on scaling this technology and so that investment, while it's a big number, doesn't represent a significant growth in our overall trajectory because we've been very diligent about bringing down our cost structure over time. And so you saw us in the last couple of weeks introduce our sixth-generation driver. When you see us introducing a new technology or a new approach to our go-to-market strategy, one of the things that you can think about is that's going to make scaling our business more efficient over time. And so that's what we're really focused on doing. And having the backing of Alphabet is a great, great place to be. Teacher. What's your relationship like with Rieff?

I had my sort of final quarterly earnings call with her at the last call, and she's focused on other things now. How will you work together if she kind of transitions to a different function at Alphabet? Yeah. So Ruth is going to remain involved, right? She's taking on this role as president and chief investment officer. And we are obviously a really important investment for Alphabet. And so she's been involved since I joined the company. She's a very, very ardent supporter of Waymo, and I look forward to continuing to work with her in this new capacity. To. As you know, I kind of have a hands-on experience of your competitive landscape. What do you make of sort of Tesla's strategy with Robotaxi and a proprietary ride-hailing app? And also, why sort of is your approach different and going to succeed to them or to a cruise, for example? You know, this sort of question of competitive landscape I think is so

interesting because we are in the business of trying to make the road safer, and we are in the business of doing it in a way that takes the human out of the loop for two reasons. One is it expands the number of people who have access to mobility options, right? If you don't need a driver's license, if you don't have to sit behind the wheel, then Waymo's a perfect opportunity for you, and hopefully any level for that, actually, any level four system that actually makes the roads safer will be that. And so that's the way we think about it. And so when I think about some of the other approaches that people are taking, I think if you need a driver's license or if the human has to take over, it's just very different. And it's not, you know, we're heads down focused on our strategy, which is a level four technology.

Waymo Hits 100,000 Weekly Paid Rides

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Bloomberg Technology

Waymo is providing over 100,000 rides per week in San Francisco, Phoenix, and Los Angeles, with varying distances and purposes.

In San Francisco, 36% of riders use the service to connect with transit, while others use it for errands and appointments.

The premium service focuses on consistency and safety, with plans for further commercialization and expansion, including rides to SFO.

Waymo has launched 24/7 curbside pick-up at Phoenix Sky Harbor Airport and is the first autonomous vehicle company to receive FAA approval for this service.

The company is also focusing on fully autonomous rides on freeways for employee trips to and from the airport, with operations in both Phoenix and San Francisco.

Waymo emphasizes a strong company culture centered around safety and transparency, recently launching a safety hub to share their safety data publicly.

Investment and Impact of Level Four Technology on Road Safety

Level Four technology aims to improve road safety for all users, including pedestrians and cyclists, by reducing injury-causing crashes and airbag deployments.

The company is backed by a $5 billion investment from Alphabet, which is crucial for scaling the technology and driving down costs.

The introduction of a sixth-generation driver and a new go-to-market strategy is expected to make the business scaling more efficient over time.

Waymo's Transition and Competitive Strategy

Ruth will continue to be involved with Waymo as president and chief investment officer, supporting the company's mission.

Waymo's approach to mobility focuses on eliminating the need for a driver's license and human intervention, aiming to expand access to transportation and make the roads safer.

The company's emphasis on level four technology sets it apart from competitors like Tesla and Cruise, which rely on human drivers.