In a statement, Waymo revealed that the investment was spearheaded by Google's parent company Alphabet, with notable participation from Andreessen Horowitz and major financial firms Fidelity Investments and T. Rowe Price Group.
Waymo is one of several companies in the U.S. seeking to offer autonomous taxi services. It operates a commercial ride-hailing platform in San Francisco, Phoenix, and Los Angeles, charging passengers for rides in autonomous vehicles. Recently, Waymo also partnered with Uber to offer ride services through its app in new markets such as Austin and Atlanta starting next year.
Earlier this year, Alphabet committed to investing up to $5 billion over the next few years to support the startup in developing its autonomous driving technology. Waymo did not specify the proportion of this funding round contributed by Alphabet. The valuation of Waymo has not been disclosed.
In 2020, Waymo raised $2.25 billion in its first external investment round led by private equity firm Silver Lake Management LLC, which also participated in the latest round. The company raised an additional $2.5 billion in 2021.
By incorporating external capital, Alphabet is hedging its commitment to the autonomous driving sector, which could face regulatory hurdles during its development. It also continues to compete fiercely with Tesla to dominate the growing multi-billion-dollar market. Earlier in October, Tesla’s launch of its own robotaxi was poorly received, resulting in a 10% drop in its stock price.
“This funding could propel Waymo to new heights, positioning it to compete alongside several other autonomous vehicle competitors once it goes public,” analyst Andrew Grant stated. These competitors include the recently Nasdaq-listed Chinese company WeRide and Pony AI, which has filed for a U.S. IPO.
Waymo's current fleet of modified Jaguar electric vehicles will soon expand to include electric vehicles by Hyundai, featuring built-in autonomous driving technology, produced in the Korean automaker's new factory in Georgia.
According to the company, Waymo vehicles provide over 100,000 rides each week. As of August this year, they have traveled over 25 million miles without a human driver.