Alphabet’s Waymo, Avis Plan Dallas Robotaxi Launch in Multiyear Deal

Bloomberg
29 Jul

Alphabet Inc.’s Waymo plans to launch robotaxi service in Dallas next year in partnership with Avis Budget Group Inc., a push by the autonomous car company to diversify beyond its relationship with Uber Technologies Inc. to further expand across the US.

Avis Budget shares jumped 6.8% in extended trading.

In a first, Waymo said Avis will serve as the fleet partner for its robotaxis in Dallas. Customers can order rides on Waymo’s app while Avis will provide car management services, including infrastructure, vehicle readiness, maintenance and general depot operations, the companies said Tuesday in a statement. The Dallas deal marks a multiyear partnership that Waymo and Avis plan to expand to more cities over time, according to the statement.

Avis’ foray into robotaxi fleet management sets it up as a competitor to Uber and Lyft Inc., which are positioning themselves to provide similar services for driverless cars in addition to their customer-centric rideshare program.

“Our partnership with Waymo marks a pivotal milestone in our evolution, from a rental car company to a leading provider of fleet management, infrastructure and operations to the broader mobility ecosystem,” Brian Choi, Avis chief executive officer, said in the statement.

The announcement also underscores that Waymo and Uber are partners and rivals as robotaxi programs are introduced across the US.

In the five cities where Waymo vehicles are currently available, it offers rides via its app in Phoenix, San Francisco and Los Angeles, while partnering with Uber in Phoenix, Austin and Atlanta.

In the latter two markets, where Waymo rides are only available on the Uber app, Waymo is utilizing fleet services with Uber-backed partner Avomo.

For its planned Miami launch next year, Waymo is providing the service through its app, but using operations from Uber-backed fleet management company Moove.

Dallas will be a competitive robotaxi market with Uber and Lyft also planning to offer rides with their respective driverless technology partners. Uber is working with Austin-based Avride for a launch later this year, while Lyft plans to offer them with Intel Corp. spinoff Mobileye Global Inc. as soon as next year.

Alphabet has been aggressively expanding Waymo’s operations, which may also face increased competition from Tesla Inc. Earlier this month, Waymo more than doubled its service area in Austin, Tesla’s home base. It also recently began testing in New York City and announced it will be doing the same in Philadelphia.

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