Waymo Secures $5.6 Billion Funding Round

(Reuters) – Alphabet (NASDAQ:GOOGL)'s self-driving unit, Waymo, announced on Friday the completion of a $5.6 billion funding round led by its parent company, Google. This funding aims to expand its autonomous ride-hailing service.

Automakers and tech companies are investing heavily in autonomous ride-hailing services, seeking commercial success despite facing skepticism and rigid regulatory scrutiny.

The investment round included contributions from existing investors such as Andreessen Horowitz, Fidelity, Perry Creek, Silver Lake, Tiger Global, and T. Rowe Price.

With this latest infusion of capital, Waymo intends to increase the number of riders using its Waymo One ride-hailing service in San Francisco, Phoenix, Los Angeles, and expand into Austin and Atlanta through a partnership with Uber (NYSE:UBER).

Alphabet had previously announced plans for a $5 billion investment in Waymo over several years, as mentioned by finance chief Ruth Porat in July.

Waymo, which provides paid autonomous rides in the Bay Area and Los Angeles, and in Phoenix, Arizona, underwent years of testing and logging millions of miles before receiving its first permit in 2022 from the California Public Utilities Commission, which oversees ride-hailing regulations.

In related news, Tesla (NASDAQ:TSLA) CEO Elon Musk stated that the electric vehicle maker intends to launch driverless ride-hailing services to the public in California and Texas next year.

General Motors (NYSE:GM)’s Cruise is currently testing vehicles with human safety drivers pending an accident last year that forced them to halt operations. Meanwhile, Amazon (NASDAQ:AMZN)’s Zoox is expanding its testing of vehicles designed without steering wheels or pedals.