Alphabet (NASDAQ:GOOGL)’s GOOGL self-driving unit Waymo has ramped up its efforts to expand its ride-hailing service called Waymo One by partnering with Geely, a China-based automotive company.
Per the terms, Geely’s electric mobility brand, Zeekr, will design and develop electric vehicles for Waymo, into which Waymo Driver will be integrated.
These will be rider-first vehicles, which will feature a B-pillarless design, and have enough headroom and leg room. Further, there will not be any steering wheel and pedals inside the vehicles, which will offer a full autonomous driving experience.
The underlined vehicles will be first introduced on the roads of the United States.
With the latest move, Waymo will expand its Waymo One fleet, which, in turn, will likely sustain Alphabet’s leading position in the autonomous driving space.
Growing Waymo Efforts
The latest move bodes well for the company’s strengthening efforts toward expanding Waymo One across the United States.
In addition to the latest step, the company recently revealed that its Early Rider program, which is now called Waymo One Trusted Tester, has hit the streets of San Francisco and welcomes people to hail a ride in a self-driving Jaguar I-Pace. People can book pick-ups via the Waymo One app and rides will be free during the testing period.
This marked the first expansion of the driverless ride-hailing service of Waymo outside Phoenix, AZ.
Apart from this, Waymo teamed up with Google’s Maps to ensure a seamless booking experience for Waymo One. This enables customers to book Waymo One directly from the Maps app.
The endeavors will help Alphabet further penetrate the booming autonomous driving space.
Per a report from Mordor Intelligence, the worldwide driverless vehicle market is expected to see a CAGR of 18.06% between 2021 and 2026.
Intensifying Competition
Given the upbeat scenario, not only Alphabet but companies like Amazon AMZN, Intel INTC and Baidu (NASDAQ:BIDU) BIDU are also making every effort to capitalize on the growth prospects in the autonomous driving space.
Amazon’s buyout of Zoox, a developer of autonomous ride-hailing vehicles, remains a major positive. Further, the company’s launch of its first self-driving robotaxi strengthened its position in the autonomous driving space.
Meanwhile, Intel is gaining strong on the low power consumption of Mobileye (F:0ME) chips and the ability to create maps for self-driving systems. The company intends on introducing a pilot for autonomous taxis and ride-hailing services in Munich and Tel Aviv in 2022.
Baidu is gaining hugely from the expansion of the Apollo Go Robotaxi service, which features about 100 pick-up and drop-off stations across several residential as well as business areas.
Nevertheless, Alphabet’s growing autonomous driving initiatives are likely to help it stay ahead of the curve.
Currently, Alphabet carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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