Alphabet’s (GOOGL) self-driving unit, Waymo, just announced a new partnership with Toyota Motor (TM), the world’s biggest carmaker. The two companies plan to integrate Waymo’s self-driving tech into Toyota’s vehicles, aiming to bring autonomous features directly to personally owned cars, not just ride-hailing fleets.
Though the deal is still in its early stages, the move marks a big step forward for Waymo, which has largely focused on robotaxis until now.
Waymo’s Expanding Network of Auto Partnerships
Waymo’s partnership with Toyota isn’t its first auto industry tie-up. The company has previously worked with brands like Jaguar Land Rover, Daimler Trucks, Hyundai, and China’s Geely.
While most of these deals were primarily focused on fleet use or testing, the Toyota collaboration signals a move toward broader consumer access.
Why It Matters
This deal comes at a time when other major companies, like General Motors (GM), are reconsidering their autonomy plans. For instance, GM announced in December that it would exit its robotaxi business due to mounting losses.
Meanwhile, Tesla (TSLA) continues to promise its own fully self-driving cars, with CEO Elon Musk claiming to launch robotaxi rides in Austin by June using its latest “Full Self-Driving” software. That said, Tesla has yet to deliver vehicles that can safely operate without a human at the wheel.
Now, with Waymo and Toyota teaming up, the competition to bring driverless cars to everyday drivers is clearly picking up speed.
Waymo’s Momentum Is Growing
Waymo’s driverless services are already running in four major U.S. cities — San Francisco, Phoenix, Los Angeles, and Austin. And if you go by numbers, its business is picking up speed. Waymo is now clocking 250,000 paid rides per week, up from 200,000 in February.
That 25% surge comes as the company expanded service in the Bay Area and launched operations in Austin, reflecting that the demand for robotaxis is definitely rising.
Is Alphabet a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 30 Buys and 10 Holds assigned in the past three months, as indicated by the graphic below. After a 15.3% decline in its stock price year-to-date, the average GOOGL price target of $199.16 per share implies 24.35% upside potential.
