Google's self-driving taxi business, Waymo, just raised $5.6 billion in a series-C round. This is the second capital raise that includes outside investors. It previously raised $3.2 billion in 2020, reducing Google's shareholding from 100%.
Google was the lead investor in this round, with some very heavy hitters investing, including Andreessen Horowitz, Silver Lake, Fidelity, Tiger Global, Perry Creek, and T. Rowe Price. We are not entirely sure of Google's current holding in Waymo, but it is probably still north of 80%.
The fresh funds will be used to expand into new US cities, to complement its recent partnership with Uber. Waymo currently operates in San Francisco, Los Angeles, Phoenix, and is expanding to Austin and Atlanta. It gives paid rides to more than 100 000 customers per week, with each ride providing valuable information that the company can use to improve its models.
Public opinion on autonomous vehicles remains cautious, with a Pew survey indicating most Americans would still avoid driverless rides. Yet, Waymo's data claims there are fewer crashes compared to human drivers, though incidents like blocking traffic and wrong-way moves have occurred.
The latest Waymo model, based on the Geely Zeekr, includes custom sensors and a robust AI driver. Waymo has also partnered with Hyundai to bring the Ioniq 5 EV into its fleet.
Waymo may well be the Google side-bet that really ramps up and starts paying dividends.