Alphabet’s self-driving car startup Waymo secures $5.6 billion funding as robotaxi race heats up

Alphabet’s autonomous vehicle unit Waymo has just closed a $5.6 billion funding round, marking its biggest capital raise to date. The Series C round was led by Google’s parent company, Alphabet, with participation from major backers like Andreessen Horowitz, Perry Creek, Fidelity Investments, T. Rowe Price, Silver Lake, and Tiger Global, among others, Waymo said on Friday.

Waymo’s co-CEOs, Tekedra Mawakana and Dmitri Dolgov, said the fresh capital infusion will be used to fuel expansion and further development of the Waymo Driver for business applications.

“With this latest investment, we will continue to welcome more riders into our Waymo One ride-hailing service in San Francisco, Phoenix, and Los Angeles, and in Austin and Atlanta through our expanded partnership with Uber,” they shared in a joint statement.

The recent funding round brings Waymo’s total raised capital to $11.1 billion, following two earlier rounds of $3.2 billion and $2.5 billion. Alphabet CFO Ruth Porat previously announced Alphabet’s commitment to invest up to $5 billion in Waymo over several years, underscoring the company’s long-term ambitions in the autonomous driving space, CNBC reported.

Waymo first raised external funds in 2020, pulling in $2.25 billion. This was followed by another $2.5 billion in 2021 to advance its technology and grow its team, with backing from investors like Alphabet, Andreessen Horowitz, Silver Lake, and Tiger Global.

Waymo is at the forefront of the U.S. robotaxi market, operating a commercial ride-hailing service in cities like San Francisco, Phoenix, and Los Angeles, where customers can pay for rides in self-driving cars. The company also recently extended its reach by partnering with Uber to introduce its service in Austin, Texas—Tesla’s headquarters city and home to another potential competitor.

Waymo’s Robotaxi service has gained popularity among passengers, including those who prefer the perceived safety of a driverless vehicle overriding with unknown human drivers. Some parents even rely on Waymo’s service to safely transport their teenagers to school.

Currently, Waymo operates over 100,000 weekly trips in Los Angeles, Phoenix, and San Francisco through the Waymo One app, with a recent expansion to Austin in partnership with Uber.

Waymo’s latest move keeps it in the lead of the U.S. robotaxi market, distinguishing it from other autonomous vehicle companies by its commercial service footprint across multiple major cities.

Waymo