Waymo’s Robotaxi Business Nears Break-even

Waymo to expand robotaxi service to new cities, aiming for 2026 autonomous launch.

Alphabet’s subsidiary, Waymo, is set to expand its robotaxi service to Minneapolis, Tampa, and New Orleans, according to CNBC.

Initial tests will involve human drivers, with fully autonomous taxis expected to launch in 2026. This expansion brings the total number of planned cities to 15.

In the coming weeks, pilot launches are scheduled for Dallas, Houston, San Antonio, Miami, and Orlando. Previously, the company announced plans to introduce vehicles in Detroit, Denver, Las Vegas, Nashville, San Diego, Washington, and London.

Currently, the service operates in Austin, Phoenix, Atlanta, and Los Angeles. Since its inception in 2020, over 10 million paid rides have been completed.

Last week, Waymo began offering highway routes in San Francisco, Phoenix, and Los Angeles. This marked a significant milestone for the firm and the robotaxi industry, given the challenges of operating autonomous vehicles at high speeds.

Next year, the company aims to tackle another major challenge: operating in markets with harsh winter conditions.

“We are operating in sub-zero temperatures, including frost and hail, and testing our system’s ability to function in more severe weather conditions,” said Waymo representative Ethan Teicher.

Robotaxis Reach a Turning Point

Despite Waymo’s confident strides and those of other American players in the autonomous taxi sector, Chinese companies are expanding their operations abroad more rapidly.

“I think robotaxis have reached a turning point both here in China and in the US,” stated Baidu CEO Robin Li.

He added that many people have already experienced rides and shared positive feedback on social media. The widespread publicity of this mode of transportation’s benefits could expedite regulatory approvals.

Li’s comments echoed optimistic statements from CEO Jensen Huang and Xpeng President Brian Gu. The latter revised his cautious stance after witnessing rapid progress. His company plans to launch robotaxis in the Chinese city of Guangzhou next year.

Chinese firms claim they are close to making the robotaxi business profitable.

Over the past year and a half, Baidu, Pony.ai, and WeRide have formed partnerships with Uber, allowing for driverless taxi hailing in certain locations.

Such partnerships “will be crucial for success,” as they enable more efficient operations and quicker paths to profitability, according to Counterpoint senior analyst Murtuza Ali.

In September, Amazon entered the autonomous transport race in the US, with the first public launch of Zoox on the Las Vegas Strip on September 10.

In July, flying taxi manufacturer Joby Aviation delivered its first aircraft to the UAE and completed pilot tests. The service launch in the region is expected in 2026.