Waymo’s New Robotaxi Changes the Game

Waymo, the autonomous vehicle division of Alphabet, has taken a monumental step forward in the race for dominance in the autonomous robotaxi market. By introducing a 6th Generation robotaxi developed in partnership with Zeekr, a subsidiary of China’s Geely Holding Group, Waymo is making a bold statement: it is here to stay. This strategic move not only solidifies its leadership in autonomous mobility but also addresses critical challenges in cost, scalability, and functionality.

Why Partner with Zeekr?

On the surface, the choice of Zeekr over more familiar automakers might seem surprising. However, this partnership highlights Waymo’s focus on innovation and purpose-driven design. Zeekr, backed by the automotive powerhouse Geely, offers several advantages:

• Customizability: Zeekr specializes in creating EVs tailored to unique needs. Unlike retrofitting traditional vehicles, the Zeekr RT is designed from the ground up to support autonomous operations, focusing on functionality and passenger experience.
• Cost Efficiency: Collaborating with Zeekr allows Waymo to produce high-quality vehicles at potentially lower costs compared to working with larger automakers, which often have rigid production lines.
• Advanced EV Expertise: Zeekr benefits from Geely’s global expertise in EV development, ensuring the new vehicles meet the highest standards for quality, range, and efficiency.
• Strategic Market Positioning: By partnering with Zeekr, Waymo could be positioning itself to enter the Chinese market in the future. Zeekr and Geely’s deep roots in China provide a gateway to one of the world’s largest EV and ride-hailing markets.

Cost Advantage

Waymo’s decision to move away from retrofitted vehicles like the Jaguar I-Pace is driven by clear cost advantages as well as challenges with Jaguar’s stability in the market.

Jaguar I-Pace

Retrofitting luxury SUVs for autonomous use involved significant expenses:

• The base price of a Jaguar I-Pace starts at approximately $70,000.
• Adding autonomous hardware, including LiDAR, radar, and advanced computing systems, increased the cost by approximately $50,000 per vehicle.
• This brought the total cost of an I-Pace retrofit to an estimated $120,000 per unit.

Zeekr RT

• The base cost of Zeekr vehicles, derived from similar consumer EV models, is estimated at $55,000.
• Waymo has reduced the number of cameras onboard from 29 to 13 and LiDAR sensors from five to four, while maintaining or improving performance. This optimization cuts the cost of high-cost LiDAR units and cameras, likely reducing expenses by $30,000 per vehicle.
• The total cost per Zeekr robotaxi is projected to be around $85,000 per unit, making them 30% more affordable than retrofitted I-Pace models.

The Zeekr RT’s micro-van configuration includes enhanced headroom and legroom, creating a spacious and comfortable interior ideal for ride-hailing. The purpose-built approach eliminates unnecessary features, focusing on functionality and passenger experience.

Competition

• Zoox: Like Waymo, Zoox focuses on purpose-built autonomous vehicles. However, Waymo’s advanced AI technology paired with its extensive field experience could position it ahead in terms of deployment speed and efficiency, not to mention its partnership with Uber.
• Tesla: Tesla’s robocabs are extremely affordable, with a price target around $30,000, but their ambitions are hindered by design choices. Their two-seater concept is less practical for ride-hailing services. Tesla’s reliance on a camera-only system raises questions about long-term reliability and safety compared to Waymo’s proven multi-sensor approach.

Future

Waymo’s partnership with Zeekr represents a strategic pivot that combines cost efficiency, scalability, and superior technology. By introducing a purpose-built robotaxi, Waymo is not only preparing to scale its operations but also redefining what it means to deliver a premium autonomous ride-hailing experience. This move further distances Waymo from competitors.

With its purpose-built vehicles, optimized sensor technology, and strong partnerships, Waymo is solidifying its status as the leader in the robotaxi industry. As the world moves closer to widespread adoption of autonomous mobility, Waymo’s latest move is a clear signal that it intends to lead the way.