Alphabet Inc’s self-driving car spinoff Waymo is to buy up to 20,000 electric vehicles from Jaguar Land Rover Ltd to help realize its vision for a robotic ride-hailing service.
The commitment, announced on Tuesday at a New York event that was also Webcast, marks another step in Waymo’s evolution from a secret project started in Google nine years ago to a spin-off that is gearing up for an audacious attempt to reshape the transportation business.
The deal would expand upon a fleet of self-driving cars that Waymo has been gradually building in partnership with Fiat Chrysler Automobiles NV since 2015.
Photo: Bloomberg
Waymo initially equipped about 600 Pacifica minivans with its self-driving technology before negotiating to buy “thousands” more of the vehicles.
The minivans are to be part of a ride-hailing service that Waymo plans to launch in Phoenix, Arizona, later this year.
If all goes well, Waymo expects to expand the service to other states.
Jaguar is to deliver its vehicles for Waymo’s ride-hailing from 2020 to 2022.
The 20,000 I-Pace models would provide up to 1 million rides per day, Waymo said.
Financial terms of the deal were not disclosed.
Jaguar lists the starting price for the I-Pace at about US$70,000, a figure that translates into US$1.4 billion for 20,000 vehicles.
The alliance with Jaguar would give Waymo a way to appeal to passengers who want to ride in a more luxurious car or want to avoid the pollution caused by vehicles fueled by gasoline.
“We want to build a diversity of vehicle forms and vehicle types with the goal of providing just the right car for every trip, for every person, for every need,” Waymo chief executive officer John Krafcik said in an interview.
Waymo is negotiating with Honda Motor Co and other automakers to forge other potential partnerships, he said.
Waymo’s planned ride-hailing service poses a potential threat to Uber Technologies Inc and Lyft Inc, the early leaders in the still-developing field.
Uber and Lyft are trying to ward off Waymo by developing their own self-driving cars, even though they got a late start in autonomous technology.
Uber’s efforts suffered a major setback when one of its autonomous cars last week struck and killed a woman in Tempe, Arizona.
Arizona Governor Doug Ducey on Monday last week suspended Uber’s self-driving vehicle testing privileges, stating in a letter to chief executive officer Dara Khosrowshahi that footage of the crash raised concerns about the San Francisco-based company’s ability to safely test its technology in Arizona.
Krafcik declined to comment on Uber’s accident, but said that Waymo still believes its technology will prove to be more reliable than human drivers who have shown an inclination to be distracted or intoxicated while behind the wheel.
“We are confident in our technology, and that confidence is based on nine-and-half years of hard work, sweat and toil,” Krafcik said. “Safety is at the foundation of everything we do.”
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