Tech Giant’s Autonomous Vehicle Expansion Sparks Market Reaction
Waymo’s Ambitious Plans
Alphabet’s self-driving car unit, Waymo, is gearing up to expand its autonomous vehicle operations to 10 new cities in 2025. This move is expected to challenge its system and test its capabilities in diverse environments. According to Nick Rose, product manager for Waymo’s expansion efforts, the company is looking for places that will push its system to the limit.
Ride-Hailing Stocks Take a Hit
The news sent shockwaves through the ride-hailing market, with shares of Uber and Lyft plummeting on Wednesday. Uber stock dipped 2.3% to 66.50, while Lyft stock fell 3.9% to 13.40 in afternoon trading. Google stock, on the other hand, was down a fraction, hovering near 195.
Testing the Waters
Waymo’s expansion plans involve sending autonomous vehicles for test operations in 10 new cities, including Las Vegas and San Diego. The company will start with a small fleet of 10 vehicles per city, according to RBC Capital analyst Brad Erickson. Notably, Waymo has primarily operated in sunny cities with favorable weather conditions, making this expansion a significant step forward.
Partnership and Competition
Interestingly, Waymo and Uber have partnered in several markets, including Phoenix, where Waymo’s robotaxis are available through the Uber app. In 2025, Waymo’s expansion into Austin and Atlanta will be exclusively available through the Uber app. However, in Miami, the robotaxi service will only be available through the Waymo One app. This complex dynamic between partnership and competition is likely to shape the future of the ride-hailing market.
Market Performance
Despite the initial reaction, Google stock has advanced 3% in 2025, while Uber stock has gained 10% and Lyft is up 4%. Uber stock holds an impressive IBD Composite Rating of 87 out of a best possible 99, indicating strong growth potential.
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