A Robotaxi Business Is A Dream For Elon Musk–But Already A Reality For Waymo

Waymo's robotaxi service is currently booking more than 50,000 rides per week across three major cities in the US. With an average fare of $20 per ride, the projected annual revenue for this year is expected to top $50 million. This represents a significant growth from 2022, where the revenue was less than $1 million, according to a Pitchbook estimate. This growth shows a potential for Waymo to become a lucrative AI-driven business for Alphabet.

The main safety concerns surrounding Waymo's autonomous vehicles involve erratic behavior and potential violations of traffic laws. The National Highway Traffic Safety Administration (NHTSA) has received 22 reports of Waymo vehicles either crashing or potentially violating traffic safety laws2. These incidents include collisions with stationary objects such as gates and chains, collisions with parked vehicles, and instances where the autonomous driving system (ADS) appeared to disobey traffic safety control devices.

In response to these incidents, Waymo has issued a software recall for its entire 672-vehicle fleet after one of its robotaxis in Phoenix hit a telephone pole in May while attempting to pull over at low speed. The company has also acknowledged that its vehicles occasionally get involved in minor traffic collisions, but it maintains that its technology is better at preventing more serious incidents than human drivers.

Waymo has stated that it is committed to scaling up its operations responsibly and that it will continue to work with regulators to ensure safety. The company is also cooperating with the NHTSA's investigation into the incidents.