Waymo is internationalizing its robotaxi business

Waymo has announced a $16 billion investment round aimed at expanding its robotaxi business to more cities in the United States as well as some foreign markets.

The investment round is led by Dragoneer Investment Group, a leading investment firm in late-stage pre-IPO technology companies.

Waymo’s co-CEOs said in a blog post that they will use some of the money to buy more cars to increase the size of their fleet. This is a critical step, as Waymo aims to launch services in at least 20 new cities by 2026. The company currently operates more than 2,500 robot taxis in six US cities. This new investment brings Waymo’s value to $126 billion.

Waymo’s latest investment round attracted several new investors, including Dragonair, Sequoia Capital and DST Global. Returning investors include Andreessen Horowitz, Abu Dhabi sovereign wealth fund, Fidelity Management and Research Company, Perry Creek Capital, Silver Lake, Tiger Global, Temasek and T. Rowe Price. The company last raised $5.6 billion in 2024, valuing the company at $45 billion.

Despite the promise of cutting costs by eliminating driving jobs, self-driving cars are very expensive. In addition to buying cars, companies must install expensive sensors and computers in each car. These robotaxis need to be monitored by remote operators during the trip. And fleet managers manage electric vehicle charging, cleaning and sensor calibration when the robotaxis are offline.

However, Waymo is one of the few companies in the US that offers a paid service with fully driverless cars. Amazon’s Zoox is still offering free rides in a few cities, while Tesla has yet to get past the use of in-car safety monitors.

Waymo says it plans to bring its robotaxis to a number of key markets, including New York, London and Tokyo. Last week, the National Highway Traffic Safety Administration (NHTSA) opened an investigation into an accident in which a Waymo vehicle struck a child in Santa Monica, causing minor injuries.