Alphabet: Waymo's Importance Is Growing
Summary
- Waymo is the clear leader in the robotaxi market but has failed to capture the imagination of investors due in large part to scalability concerns.
- Waymo's data acquisition capabilities are rapidly scaling though, which could enable it to introduce a vision-only, end-to-end system within the next few years, assuming this approach is viable.
- This would enable Waymo to scale globally at a much faster pace and open the door to additional opportunities, like ADAS on consumer vehicles.
- While Waymo will only ever be a small part of Alphabet's business, success beyond just robotaxis could help to drive returns in coming years.
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