{"id":283790,"date":"2018-11-13T11:06:44","date_gmt":"2018-11-13T09:06:44","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=283790"},"modified":"2018-11-13T11:06:44","modified_gmt":"2018-11-13T09:06:44","slug":"google-company-waymo-to-launch-first-driverless-car-service-next-month","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/283790\/google-company-waymo-to-launch-first-driverless-car-service-next-month\/","title":{"rendered":"Google company Waymo to launch first driverless car service next month"},"content":{"rendered":"<p>In just a few weeks, humanity may take its first paid ride into the age of driverless cars.<\/p>\n<p>Waymo, the secretive subsidiary of Google\u2019s parent company, Alphabet Inc, is planning to launch the world\u2019s first commercial driverless car service in early December, according to a person familiar with the plans. It will operate under a new brand and compete directly with Uber and Lyft.<\/p>\n<p>Waymo is keeping the new name a closely guarded secret until the formal announcement, said the person, who asked not to be identified because the plans haven\u2019t been made public.<\/p>\n<p>\u201cWaymo has been working on self-driving technology for nearly a decade, with safety at the core of everything we do,\u201d the company said in an emailed statement.<\/p>\n<p>A Waymo spokesperson declined to comment on the name of the new service or timing of the launch. It\u2019s a big milestone for self-driving cars, but it won\u2019t exactly be a \u201cflip-the-switch\u201d moment. Waymo isn\u2019t planning a splashy media event, and the service won\u2019t be appearing in an app store anytime soon, according to the person familiar with the program.<\/p>\n<p>Instead, things will start small\u2014perhaps dozens or hundreds of authorized riders in the suburbs around Phoenix, covering about 100 square miles.The first wave of customers will likely draw from Waymo\u2019s Early Rider Program\u2014a test group of 400 volunteer families who have been riding Waymos for more than a year.<\/p>\n<p>The customers who move to the new service will be released from their non-disclosure agreements, which means they\u2019ll be free to talk about it, snap selfies, and take friends or even members of the media along for rides. New customers in the Phoenix area will be gradually phased in as Waymo adds more vehicles to its fleet to ensure a balance of supply and demand.<\/p>\n<p>The launch of a commercial ride-hailing service will mark an end to the intense secrecy that\u2019s surrounded Waymo\u2019s program\u2014and self-driving research in general\u2014since Google first started working on it a decade ago.<\/p>\n<p>\u201cThis positions Waymo really far ahead of everyone else,\u201d said Nick Albanese, an intelligent mobility analyst at Bloomberg New Energy Finance.<\/p>\n<p>\u201cGM is the other leader, and they\u2019re probably more than a year away from doing this. It\u2019s very impressive.\u201d<\/p>\n<p>Being first has its advantages. It establishes credibility and allows Waymo to build out a network of vehicles, maintenance depots and support services robust enough to draw customers away from Uber and Lyft. The early start also makes Waymo\u2019s ride-hailing service worth about $80 billion\u2014even before the service is launched\u2014according to an analysis by six Morgan Stanley analysts in August.<\/p>\n<p>Opportunities in driverless trucking and technology licensing add another $96 billion in current value, according to the analysts. Those lines of business will still fall under the Waymo umbrella.<\/p>\n<p>The new brand launching in December will only apply to the ride-hailing app and is meant to differentiate it from the other services, according to a person familiar with the company\u2019s strategy.<\/p>\n<p>Still, Waymo\u2019s head start isn\u2019t insurmountable. GM plans to start a similar ride-hailing service late next year, while Tesla, Daimler, Volkswagen and other competitors aren\u2019t far behind\u2014each with their own approach to solving the technological and social challenges of taking human drivers out of the car.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Waymo0.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-283796\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Waymo0.png\" alt=\"\" width=\"1200\" height=\"809\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Waymo0.png 1200w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Waymo0-300x202.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Waymo0-768x518.png 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Waymo0-1024x690.png 1024w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/a><strong>What to Expect in December<\/strong><\/p>\n<p>When Waymo starts its commercial program, there will be backup drivers in some cars to help ease customers into the service and to take over if necessary, according to the person familiar with the plans. The fleet of heavily modified Chrysler Pacifica minivans will drive themselves more than 99.9 percent of the time, based on data from Waymo\u2019s test program submitted to California regulators.<\/p>\n<p>Some volunteers in the Phoenix Early Rider Program won\u2019t switch over to the new commercial program, the person said. Instead, they\u2019ll continue to test new features and offer feedback to the company. For example, volunteers may receive cars with no backup driver with increasing frequency.<\/p>\n<p>Waymo\u2019s plan is to plant the seeds of these drivereless car programs in different metro areas across the US, and to gradually expand outward. It\u2019s a careful, almost plodding process meant to avoid the bad customer experiences and avoidable crashes that could set a program back by years.<\/p>\n<p>By the time Waymo\u2019s service becomes a household name in the US, like industry giants Lyft or Uber, the company will have mapped and tested every road in excruciating detail. Waymo\u2019s turtle approach is in marked contrast to Tesla Inc\u2019s share strategy.<\/p>\n<p>Elon Musk\u2019s trailblazing electric carmaker is working on a self-driving approach that would activate almost simultaneously across a nationwide fleet of hundreds of thousands of cars.<\/p>\n<p>Waymo\u2019s Phoenix program may seem modest compared with that plan, but last week Waymo won approval to begin testing cars with no backup drivers in California\u2019s Silicon Valley, where Tesla\u2019s Autopilot team is based. Waymo already has dozens of self-driving vans operating out of Alphabet\u2019s X lab in Mountain View to provide a daytime taxi service for employees.<\/p>\n<p>The next step will be to start an Early Rider Program based on the Phoenix model and eventually launch a commercial program in Musk\u2019s backyard.<\/p>\n<p>There are other ways to quantify Waymo\u2019s early advantage against its rivals. California requires detailed reporting from every company testing cars there, and the results show Waymo far ahead of competitors testing on public roads in the state. The chart below shows the number of miles driven, on average, before a human took control of the car.<\/p>\n<p><strong>How Much Will It Cost?<\/strong><\/p>\n<p>Waymo is just beginning to experiment with pricing models. For now, the program is more about learning how to safely scale driverless cars than making money. At launch, Waymo will offer straightforward fares that are competitive with Uber and Lyft.<\/p>\n<p>A view of the Waymo app in July by Bloomberg showed a streamlined user-interface that resembled Google\u2019s navigation app, with the additional functions of a standard ride-hailing app.<\/p>\n<p>Pricing may become more nuanced as Waymo collects more data from the commercial program. Once the backup safety drivers are taken out of the equation and Waymo figures out how to charge for in-ride entertainment and advertising, analysts expect base fares to drop.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Waymo1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-283794\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Waymo1.png\" alt=\"\" width=\"1200\" height=\"1087\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Waymo1.png 1200w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Waymo1-300x272.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Waymo1-768x696.png 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Waymo1-1024x928.png 1024w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/a><strong>Are Driverless Cars Really Happening?<\/strong><\/p>\n<p>In a Bloomberg tour of Waymo\u2019s Phoenix program in July, dozens of minivans shuttled in and out of a nondescript depot in Chandler, Arizona. Waymo had just doubled the depot size to almost 70,000 square feet. A handful of dispatchers managed a fleet of hundreds of vehicles, and new vans were arriving each week.<\/p>\n<p>One could argue that Waymo\u2019s commercial program is just another incremental step in its decade-old development program. After all, there will still be some backup drivers, customers will have to wait to join, it will only operate in a tiny geographic area with ideal driving conditions, and it\u2019s still years away from being a profitable, stand-alone business.<\/p>\n<p>But Waymo has reached deals to acquire as many as 62,000 plug-in hybrid Pacifica minivans and 20,000 fully-electric I-Pace SUVs to build out its fleet over the next few years.<\/p>\n<p>There are test cars on the road already ferrying passengers with no backup drivers, and starting next month, Waymo\u2019s newly branded service will start selling rides to its first true customers.<\/p>\n<p>The age-old guessing game of how long it will take for cars to drive themselves has come to an end.<\/p>\n<p>The better question now: How long will it take them to reach me?<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/motoring\/275517\/whos-winning-the-self-driving-car-race\/\" target=\"_blank\" rel=\"noopener\">Who\u2019s winning the self-driving car race?<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In just a few weeks, humanity may take its first paid ride into the age of driverless cars.<\/p>\n","protected":false},"author":59,"featured_media":275691,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11119],"tags":[53,26,13480],"class_list":["post-283790","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-google","tag-headline","tag-waymo"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/283790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=283790"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/283790\/revisions"}],"predecessor-version":[{"id":283800,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/283790\/revisions\/283800"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/275691"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=283790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=283790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=283790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}