Alphabet’s self-driving car unit, Waymo, is picking up momentum in its existing West Coast markets after years of heavy investment and losses. The company just expanded its partnership with Uber to bring its robotaxi service to Atlanta and Austin, Texas, in early 2025. Waymo will be operating in five markets, including Phoenix, San Francisco, and Los Angeles. Waymo and Uber are already partners in Phoenix. The growth in ridership and the deeper ties with Uber are significant milestones for Waymo and Alphabet, which has invested billions in the venture with seemingly little reward for investors. Waymo is flexing its muscles just weeks before Tesla’s hotly anticipated robotaxi event on Oct. 10. Waymo is currently the only commercial robotaxi service in the U.S., positioning it as a significant player in the evolving commercial future of autonomous driving technology. Analysts like Jim Cramer see potential in Waymo, stating that it could be “a very big business.” The long and winding road for Waymo began in 2009 as Google’s self-driving car project and eventually became a standalone company under Alphabet’s Other Bets segment. Waymo’s growth has accelerated, with 700 autonomous vehicles on the road across its markets and over 2 million trips provided to date. The recent expansion into Atlanta and Austin, in addition to the existing markets, is expected to boost revenue growth significantly. Waymo’s improving revenue outlook is welcomed news for Alphabet investors, particularly after heavy losses in the Other Bets unit. Alphabet has been investing heavily in Waymo, with a new multiyear investment of $5 billion announced in July. Waymo’s partnership with Uber is crucial for the business’s economic viability, as it allows for higher vehicle utilization and access to Uber’s vast network of consumers. Uber’s shift towards partnerships, including with Waymo and Cruise, highlights the importance of collaboration in the autonomous driving industry. Safety remains a key concern, with both Waymo and Tesla facing challenges in the development and deployment of self-driving technology. As Waymo continues to expand into new markets, the competition in the autonomous driving landscape is expected to intensify. Nonetheless, Waymo’s head start in the market positions it well for future growth and success.