Waymo, widely regarded as the market leader in autonomous vehicles, has made a significant strategic shift in its focus. After spending six years conducting tests with Class 8 trucks, the company has now decided to pivot away from autonomous trucks and instead concentrate on the booming ride-hailing industry. In a recent blog post, Waymo’s CEOs, Dmitri Dolgov and Tekedra Mawakana, discussed the compelling growth opportunities they have observed in the ride-hailing sector and explained the rationale behind this new direction.
Waymo initially ventured into the trucking industry in 2017, conducting trials of its autonomous vehicle technology in trucks within Arizona and California. The following year, they initiated a test program involving autonomous trucks delivering supplies to Google data centers in Atlanta. In 2019, Waymo’s trucking program expanded significantly with its entry into the Arizona and Texas markets. The company further solidified its presence in the trucking industry by hiring Boris Sofman, the co-founder and former CEO of robotics startup Anki, to head engineering in its autonomous trucking division.
Despite the progress made in the trucking industry, Waymo recognizes the immense potential and increasing demand in the ride-hailing sector. To meet this rising demand, the company plans to harness its advanced AI/ML technology and focus on satisfying riders’ needs in major cities such as San Francisco, Phoenix, and Los Angeles. Consequently, Waymo will temporarily postpone the majority of technical development in its trucking division while scaling back its commercial and operational efforts. However, the company intends to continue utilizing its autonomous vehicle system for trucking, although it has not disclosed any timeline for renewing the program or its eventual commercial deployment.
This shift in strategic focus has necessitated a substantial reorganization of Waymo’s staff. The majority of the trucking team members have been reassigned to other departments within the company to assist with winding down the trucking program. Waymo is committed to providing support to its employees during this transition period.
Despite the shift away from trucking, Waymo remains committed to its partnership with Daimler Truck North America to develop an autonomous truck platform. However, the collaboration will proceed at a slower pace. Waymo will continue allocating resources to create a redundant chassis, an essential component for the safe deployment of autonomous trucks. The company also plans to continue conducting preliminary tests of autonomous trucks in the near future.
It’s worth noting that Waymo’s partnerships with UPS and J.B. Hunt, both of which were involved in the trucking program, have concluded. Additionally, Waymo is evaluating future plans for a nine-acre trucking hub it intended to construct in Dallas by 2021, considering its new emphasis on ride-hailing and determining the best course of action for the facility.
Alongside its trucking endeavors, Waymo’s logistics division, Waymo Via, has been actively engaged in delivering goods through self-driving trucks and other autonomous vehicles. Waymo Via formed partnerships with leading companies such as Uber Freight, UPS, J.B. Hunt, and Ryder, with the goal of revolutionizing the logistics and freight transportation sectors.
Waymo One, Waymo’s ride-hailing service, is currently available in Phoenix and its surrounding suburbs, including Scottsdale and Tempe. In May 2023, the service area doubled in size, marking years of steady growth. While awaiting the final permit from the California Public Utilities Commission to charge passengers, Waymo also offers ride-hailing services in San Francisco.
In conclusion, Waymo’s decision to switch its focus from autonomous trucks to the ride-hailing market stems from the promising commercial opportunities and rider demand observed in the ride-hailing industry. Although Waymo is temporarily pausing its trucking program, the company still envisions eventually integrating its autonomous vehicle system into the trucking industry. Waymo will continue collaborating with Daimler Truck North America, albeit at a reduced rate, while maintaining some truck testing activities. This strategic realignment highlights Waymo’s agility and ability to make informed decisions in an ever-evolving autonomous vehicle industry.
