Alphabet Inc.’s (GOOG) self-driving unit Waymo is partnering with Avis Budget Group (CAR) to launch a robotaxi service in Dallas in 2026. The deal positions Avis as the fleet manager for Waymo’s electric vehicles in the city. That includes maintenance, cleaning, charging, and infrastructure support.
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Waymo said Dallas is the first city in a planned expansion of the partnership. The agreement is structured as a multiyear deal, with plans to roll out in additional markets over time. Rides will be available through the Waymo app.
Waymo Doubles Down on Dallas
Waymo currently operates paid robotaxi rides in five U.S. cities: Phoenix, Los Angeles, San Francisco, Austin, and Atlanta. It runs its own app in most of these markets, while also partnering with Uber Technologies (UBER) in select areas. In Phoenix, Austin, and Atlanta, Waymo vehicles are also available on the Uber app. For those cities, Waymo uses fleet support from Uber-aligned companies, including Avomo and Moove.
In Dallas, Waymo will rely entirely on Avis to keep vehicles in service. The company has already started mapping and road testing in the area. According to Waymo, Dallas was selected due to its high traffic fatality rate, the highest among U.S. cities with over one million people.
The move deepens Waymo’s investments in Texas, where it already operates in Austin and is testing in Houston and San Antonio. It also plans to launch in Miami and Washington, D.C., next year. The company recently began testing in New York City and Philadelphia. Waymo reported more than 250,000 paid rides each week across its five current cities. At an estimated average fare of $20.43, that translates to roughly $5.1 million in weekly revenue.
A Crowded Space
For Avis, the partnership marks a shift into a new business line. Avis Chief Executive Officer Brian Choi said the company is now focusing on providing infrastructure and operational services to mobility partners. That places it in the same space as Uber and Lyft (LYFT), both of which are also preparing to support autonomous fleets.
In Dallas, Uber is partnering with local startup Avride to launch a robotaxi service later this year. Meanwhile, Lyft plans to enter the market in 2026 through a collaboration with Mobileye Global (MBLY). Separately, Tesla (TSLA) is conducting supervised autonomous rides in Austin, though it has not yet introduced a commercial robotaxi service anywhere in Texas.
We used TipRanks’ Comparison Tool to line up the main players mentioned in the article. It’s a quick way to see how these stocks measure up and get a wider look at the autonomous space.
