The global autonomous driving industry is in a critical phase. Waymo, a subsidiary of Alphabet (GOOGL, Financial), recently announced its Waymo One service is now providing 150,000 paid rides weekly, a 150% increase over two months and a threefold rise in six months. Though not surpassing Chinese competitor AutoX, Google is investing heavily in Waymo to expand into new cities and enhance its technology. Waymo recently secured $5.6 billion in a C-round funding, marking its largest fundraising to date.
Meanwhile, Tesla (TSLA) is also aggressively pursuing the market, having launched its autonomous taxi, the CyberCab. CEO Elon Musk revealed plans for employee testing, with public service expected next year.
As global and Chinese markets eye massive growth in autonomous vehicles, companies like WeRide (WRD) aim to compete fiercely. WeRide, a prominent Chinese player, recently went public, but its stock performance has been shaky, falling below its initial offering price.
Over the past three and a half years, WeRide has accumulated losses over $7.1 billion, caused mainly by extensive R&D investments totaling $3.8 billion. Although WeRide operates in seven countries and partners with industry giants like Renault-Nissan-Mitsubishi and Bosch, commercial success remains elusive.
The company's revenue from autonomous vehicles and ADAS services is growing, indicating a shift towards service-based models. Through collaborations with Bosch, WeRide has pivoted to focus on Level 2 autonomous driving solutions, now a significant revenue source.
Despite industry challenges, the potential of the Robotaxi market remains promising. Predicted to commercialize by 2026, the global market could reach $66.6 billion by 2030, with China poised as the largest market. WeRide's new Robotaxi model, the GXR, developed with Geely, showcases its advanced L4 technology ready for complex driving conditions.
As high-level autonomous technology enters commercialization, companies like WeRide face intense competition and seek profitable operations amid evolving regulations and technological advancements.
