Google’s Self-Driving Car Arm on Road to $110 Billion Valuation

Google-owned self-driving vehicle startup Waymo is reportedly close to finalizing a $16 billion funding round.

That new funding will value the company at $110 billion, more than double its current valuation, the Financial Times (FT) reported Saturday (Jan. 31), citing sources familiar with the matter. Google is reportedly set to contribute more than 75% of the amount raised, the sources said.

Waymo’s annual recurring revenue — a measure of anticipated subscription revenue typically used by startups — has climbed to more than $350 million and the funding round was three times oversubscribed, the sources added.

“While we don’t comment on private financial matters, our trajectory is clear: with over 20mn trips completed, we are focused on the safety-led operational excellence and technological leadership required to meet the vast demand for autonomous mobility,” Waymo said.

As the FT noted, Waymo has established itself as the leader in the robotaxi space, having logged more than 125 million fully autonomous miles on American roads, with few reported safety incidents. The company says it expects to host 1 million rides per week this year in cities such as San Francisco, Los Angeles, Phoenix and Miami.

Although the chief way to book a ride is through its own app, the company has also teamed with Uber in secondary markets such as Austin and Atlanta.

The report added that Waymo’s funding plans come as the company is working to fend off competition from Elon Musk and his company Tesla.

During an earnings call last week, the company said its capital expenditures will exceed $20 billion this year, more than double prior guidance, as it ups its investment in autonomous vehicles, as well as humanoid robotics and artificial intelligence.

As reported here, the company said it is operating unsupervised autonomous driving in Austin, Texas, with plans to expand the offering to dozens of major U.S. cities by year-end, pending approval from regulators.

“The company reiterated plans to allow vehicle owners to add their cars to an autonomous fleet and earn income when not in personal use,” PYMNTS wrote. “Tesla did not provide updated assumptions around utilization, pricing or revenue sharing, making the near-term financial impact difficult to quantify.”