Alphabet’s GOOGL self-driving project, Waymo has been steadily gaining momentum in the autonomous vehicle market.
Notably, Alphabet’s Waymo has partnered with Volvo to develop a new self-driving electric vehicle for use in a ride-hailing service.
Per the deal, Volvo will take care of the design and manufacture of the vehicles, while Waymo will work on artificial intelligence. Apart from AI, these vehicles will be modified with certain hardware like radar, LiDar sensors and cameras to ensure proper safety requirements.
We believe that Alphabet’s expertise in data collecting, storing and monetizing makes it a formidable player in the autonomous driving market.
Waymo has also partnered with Fiat-Chrysler Automobiles for Pacifica Hybrid minivans and with Jaguar Land Rover for I-Pace electric vehicles. An early breakthrough in the space backed by such deals will encourage investors, and boost Alphabet’s share price as well as competitive position.
Alphabet Inc. Price and Consensus
The latest move of Alphabet is a testament to its aggressive stance toward strengthening presence in the booming self-driving vehicles market.
Per a report from Allied Market Research, this market is expected to hit $556.67 billion by 2026, witnessing a CAGR of 39.47% between 2019 and 2026.
Also, per a report from Grand View Research, the global self-driving car and truck market is projected to witness a CAGR of 63.1% between 2021 and 2030.
Given this upbeat scenario, Tesla TSLA, General Motors, Apple, Amazon AMZN and Baidu BIDU is also leaving no stone unturned to bolster presence in this promising market.
Nevertheless, Alphabet’s growing autonomous driving initiatives are likely to aid it in leading the pack.
Alphabet is well poised to capitalize on the above-mentioned prospects on the heels of strong endeavors toward enhancing the self-driving service.
It enjoys a first-mover advantage in the Level 4 Cars race.
In addition to the latest move, the company recently acquired Latent Logic, a British AI company that specializes in a form of machine learning, namely imitation learning, which is expected to make simulation technology of Waymo more advanced and realistic. This, in turn, will strengthen the behavior prediction capability of Waymo.
Further, the company’s partnership with Lyft helped it in making some of its self-driving minivans available to the latter’s customers.
Additionally, Alphabet is merging local delivery and long-haul trucking operations into a single business line called Waymo Via.
At CES 2020, the company announced that Waymo vehicles have driven more than 20 million miles since its introduction in 2009, a feat made possible because of innovative AI skills and deep learning techniques.
Further, the latest move is in sync with its continuous endeavors toward bolstering footprint in the global autonomous driving space.
Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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