In the mid of the competition over self-driving cars, Alphabet’s self-driving unit Waymo is extending its market presence through the partnership with the transportation network company Lyft.
Car enthusiasts have been indulged with autonomous technology that a series of collaboration has been made between auto and software companies. The race among car makers gets even faster and smarter this time. Also, the presence of ride-sharing services can be seen on the road. Truly, it’s not only about owning a car, it’s more on the edge and the features of the unit.
Let’s take a look which gets more benefits on this team-up.
Waymo’s Exchange of Card
Coming from the Google self-driving car project in 2009, the company hit public roads for the first time through its reference vehicle named as Firefly in 2015. Technically, Firefly cars had custom sensors, computers, steering and braking, but no steering wheel or pedals.
In 2016, the self-driving technology project officially became Waymo. After driving fully autonomously through Toyota Prius vehicles in 2009, Lexus RX450h and Chrysler Pacifica Hybrid minivan have been added to its fleet.
During the first quarter report of Alphabet, revenues of $24.8 billion and revenue growth of 22% year over year, constant currency revenue growth of 24% year over year were achieved.
Other Bets contributed $0.2 billion with revenue growth of 48% year over year. This segment includes businesses such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, and X.
The contribution of Waymo in the Other Bets segment is expected to improve through this newest tie-up. In a statement released by Waymo, the self-driving unit indicated that Lyft’s vision and commitment to improving the way cities move will help Waymo’s self-driving technology reach more people, in more places.
On the other hand, Alphabet is apparently exchanging the cards in the middle of the rift against Uber. Alphabet has filed a case against Uber for allegedly stealing a laser-based navigational technology from Waymo which is significant to developing better self-driving cars.
Lyft’s Road to Stability
The reported broken business relationship between Waymo and Uber turned out to be beneficial to the second largest ride-sharing service provider. Lyft was valued at $7.5 billion after raising a $600 million round on the preceding month, and this partnership has just opened more doors for the company.
Lyft believed that Waymo holds today’s best self-driving technology, and collaborating with them will accelerate their shared vision of improving lives with the world’s best transportation.
The San Francisco, California based transportation network company hasn’t gone public yet, similar with Uber. The team-up with Alphabet could possibly diversify its portfolio as most of the market experts widely expect for its Initial Public Offering (IPO) this year.
Notably, Lyft depends on General Motors’ 9 percent share on the company. The American vehicle manufacturer might also seal a deal with Lyft on its rumored self-driving cars this coming 2018.
In the first quarter of 2017, Lyft had 34 percent or 70.4 million increase in rides recorded, following the massive support and popularity it received after declaring the support to help the American Civil Liberties Union (ACLU) on its fight on immigration executive orders in court. The ride-sharing company is operating around 300 cities in the United States.
Should Lyft goes public, Alibaba may just be interested to invest as the transportation network would be a great help on its line-of-business.
Right now, Lyft is still considering options to have a better financial condition better than its tightest counterpart.
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