Waymo Ride Costs vs. Uber & Lyft: Are They Worth It?

The Current Cost of Robotaxi Services: A Waymo Pricing Analysis

A foundational concept behind robotaxis centers on the expectation that widespread adoption and reduced labor expenses will eventually result in affordable transportation. While this remains unrealized, recent data provides insight into the extent of the current cost disparity.

Waymo's Pricing Compared to Uber and Lyft

Obi, an application that compiles real-time pricing and pickup estimations from various ride-hailing platforms, has released what it terms the “first comprehensive analysis of Waymo’s pricing strategy.” The findings indicate that Waymo’s autonomous vehicle rides are consistently more expensive than comparable services offered by Uber and Lyft – a trend that appears unaffected by demand.

The report, exclusively shared with TechCrunch, is based on data gathered over a month, from March 25th to April 25th, within San Francisco, California. Nearly 90,000 “offer records” were collected from Waymo, Lyft’s standard service, and UberX to facilitate a comparison of price and estimated time of arrival (ETA). These were then matched against ride requests originating from similar locations and at comparable times.

Obi’s analysis revealed that Lyft provided the lowest average price, at $14.44. Uber followed closely at $15.58. Waymo’s average price throughout the month was $20.43.

Surprising Demand Despite Higher Prices

Ashwini Anburajan, Obi’s chief revenue officer, expressed some surprise at these results, considering the initial popularity of Waymo’s service. Waymo reported in May that it is completing 250,000 paid trips weekly across its initial four cities. Despite the elevated pricing, consumer enthusiasm hasn’t diminished.

“There’s a common perception that autonomous vehicles will displace drivers and pose a risk to their employment. However, our observations suggest that operating an AV is, in fact, quite costly, and this isn’t likely to change in the immediate future,” she stated.

Peak Hour Price Differences

During peak demand periods, Obi determined that Waymo’s average price was approximately $11 higher than a Lyft ride and nearly $9.50 more expensive than an Uber.

“I hadn’t anticipated consumers being willing to pay an additional $10,” Anburajan noted. “This suggests a genuine excitement for the technology, a sense of novelty, and a preference for experiencing a ride without a human driver.”

Pricing Variability

Obi’s research also indicated that Waymo’s pricing exhibited greater fluctuation compared to Uber or Lyft.

One potential explanation, according to Anburajan, is that Waymo’s pricing model is less refined. Uber and Lyft have benefited from over a decade of experience in optimizing their ride pricing strategies. These platforms also operate with a more dynamic driver network, where individuals can freely join or leave the service.

Conversely, Waymo maintains a largely fixed, though gradually expanding, fleet of vehicles. This results in a pricing structure that more closely reflects “pure supply and demand” principles.

Impact of Distance and Wait Times

This supply and demand dynamic has two significant effects on customers. Shorter trips tend to be proportionally more expensive, with Waymo rides costing around $26 per kilometer for distances under 1.4 km.

While this trend was also observed with Uber and Lyft, Obi found that the shortest Waymo rides were priced 41.48% and 31.12% higher than their Uber and Lyft counterparts, respectively. As ride distances increased, this price gap narrowed. For rides between 4.3 km and 9.3 km, a Lyft cost $2.60 per km, an Uber $2.90 per km, and a Waymo $3.50 per km.

Furthermore, longer wait times correlate with increased trip costs. Dispatching a vehicle over a greater distance to pick up a passenger reduces the number of potentially lucrative, short-distance rides it can complete.

Despite this, Waymo customers remain undeterred, even though Obi’s data showed higher variability in Waymo’s wait times.

Customer Preferences and Concerns

In addition to the data analysis, Obi conducted surveys among riders in Los Angeles, San Francisco, and Phoenix, Arizona, to understand the factors driving these trends.

The survey revealed that 70% of Waymo riders expressed a preference for driverless cars over traditional rideshares or taxis.

However, safety remains a significant concern for many riders. 74% of survey respondents identified safety as their primary concern regarding robotaxis. Nearly 70% believe that some form of remote human monitoring should be implemented (a practice already commonly used).

Willingness to Pay a Premium

Perhaps most notably, the survey explored riders’ willingness to pay extra for a Waymo ride. Almost 40% indicated they would pay the same or even less. However, 16.3% stated they would pay up to $5 more per ride, while another 10.1% were willing to pay up to $5 extra. An additional 16.3% would pay up to $10 more.

Anburajan believes these responses help explain Waymo’s higher pricing. “There’s a unique appeal to having the vehicle to oneself,” she explained. “It provides a sense of privacy and comfort, allowing passengers to relax and enjoy the journey from point A to point B.”