Alphabet’s (GOOGL) autonomous robotaxi unit Waymo is going to Japan to test its fleet in early 2025. This is Waymo’s first international destination and a good start to expand its robotaxi business. Waymo will partner with Japan’s local taxi operator, Nihon Kotsu, to test the robotaxi fleet. Moreover, Waymo will partner with Japan’s ride-hailing service operator GO to use its Jaguar I-PACE electric vehicles (EVs) on Tokyo’s streets.
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The Japanese government and the Tokyo Metropolitan government see robotaxis as an apt way of commuting Japan’s aging population.
Here’s How Waymo’s Japan Ambition Will Take Shape
In the initial stages, Nihon Kotsu’s drivers will manually drive Waymo taxis around select areas in Tokyo to map the usual traffic conditions and streets. This process will go on for several quarters, Waymo added. The process will help Waymo to get appropriate data to train its AI (artificial intelligence) system. Meanwhile, Waymo will also test the robotaxi in a closed circuit in the U.S., purpose-built to ape Japan’s driving conditions.
This is Waymo’s first experience with a left-hand traffic market and populated streets, unlike the U.S. Once Nihon Kotsu and Waymo feel that the robotaxis are ready for driverless maneuvering, they will pursue such trips but still with a driver on board for safety.
While Waymo will not be immediately serving riders in Japan, the company is calling the process a “road trip” to work in coordination with Japan’s government officials and community groups and understand the backdrop. However, in the long run, Waymo aims to become a crucial part of Japan’s transportation ecosystem. Nihon Kotsu will act as the management and servicing partner for Waymo’s robotaxis in Japan once the fleet starts its commercial operations in the nation.
Cruise’s Loss is Waymo’s Gain
General Motors (GM) is shutting down its autonomous driving unit Cruise, owing to mounting losses and company-specific challenges. This is a big boon for Waymo since Cruise was one of its biggest potential competitors in the U.S.
While Cruise faced a series of hurdles in its robotaxi ambitions, Waymo’s drive has been almost flawless so far. Last week, Alphabet CEO Sundar Pichai said that Waymo is making 175,000 paid rides per week, that’s close to one million miles. In the U.S., Waymo is successfully navigating through select states, including Los Angeles, Austin, Phoenix, and San Francisco.
Is Google a Good Stock to Buy?
Wall Street remains highly optimistic about Alphabet stock. On TipRanks, GOOGL stock commands a Strong Buy consensus rating based on 27 Buys and six Hold ratings. Also, the average Alphabet Class A price target of $209.21 implies 6.4% upside potential from current levels. Year-to-date, GOOGL shares have gained 41.3%.
