Waymo Raises $2.5B in New Funding Round

Waymo Secures $2.5 Billion in New Funding

Waymo, originating as Google’s self-driving car initiative and now functioning as an Alphabet subsidiary, announced on Wednesday the successful completion of a $2.5 billion funding round. This represents the company’s second instance of external investment.

According to a statement published on the Waymo blog, the acquired capital will be allocated towards the continued development of the Waymo Driver platform. This platform is the core of their autonomous driving technology, and resources will also be directed towards team expansion.

Investor Participation

The funding round attracted contributions from a diverse group of existing investors. These include Alphabet itself, alongside prominent firms such as Andreessen Horowitz, AutoNation, and the Canada Pension Plan Investment Board.

Further participation came from Fidelity Management & Research Company, Magna International, Mubadala Investment Company, Perry Creek Capital, Silver Lake, and funds managed by T. Rowe Price Associates, Inc. Temasek and Tiger Global also contributed to this investment.

Leadership Transition

This announcement follows closely after the departure of former CEO John Krafcik, who announced his resignation in April after a five-year tenure.

Currently, the CEO role is jointly held by Tekedra Mawakana, previously the Chief Operating Officer, and Dmitri Dolgov, a long-standing member of the original Google self-driving project who served as Chief Technology Officer.

Previous Funding and Leadership Impact

Krafcik oversaw the company’s initial external funding round in March 2020, securing $2.25 billion. This was subsequently increased by an additional $700 million in the following months.

Reports suggest Krafcik’s leadership style was sometimes divisive within the company, as highlighted by Kirsten Korosec of TechCrunch.

Expanding Service Offerings

Beyond the Waymo One ride-hailing service, currently operational in the Metro Phoenix, Arizona region, Waymo is actively expanding its Waymo Via division. This focuses on trucking and cargo transportation solutions.

Recently, Waymo initiated a pilot program with J.B. Hunt, testing transportation services along the Houston to Fort Worth corridor.