This article first appeared on GuruFocus.

Bloomberg reporting suggests Waymo’s accelerating expansion could mark an important phase in testing whether autonomous ride-hailing can develop into a viable, potentially profitable business at scale. After operating robotaxis in cities such as San Francisco and Los Angeles, Waymo has said it is targeting more than 1 million rides per week by the end of next year, a level it has already reached on a monthly basis since the spring. Bloomberg News has also reported that Waymo is in talks to raise funds at a valuation near $100 billion, which would roughly double its valuation from a year earlier, alongside an annual revenue run rate above $350 million. As of recent public disclosures, Waymo is permitted to or testing its technology in 26 of the top 30 US metro areas and plans to launch in 12 additional cities in 2026, including London, with early deployments expected to remain limited in size.

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The expansion reflects a partnership-led approach that could help manage costs and operational complexity as the business scales. Waymo expanded into Austin and Atlanta in 2025 with Uber (NYSE:UBER), bringing its commercial presence to five cities, and has worked with Uber-backed fleet managers on tasks such as cleaning, charging, and maintenance. Future launches are expected to introduce additional partners, including Lyft in Nashville and Avis Budget Group in Dallas. Gaining exposure to multiple geographies, regulatory regimes, and operating models could give Waymo useful insights as it competes with rivals such as Tesla (NASDAQ:TSLA) and Amazon’s Zoox, which have also introduced robotaxi services at a smaller scale. Alphabet (NASDAQ:GOOG) Chief Executive Officer Sundar Pichai has said internally that the business is not expected to be financially meaningful to the parent company until 202728.

As Waymo has scaled, Bloomberg reporting indicates the company has encountered operational and technical challenges that highlight remaining uncertainties. These have included so-called edge cases such as interactions with stopped school buses, police activity, and incorrect turns, as well as a temporary suspension of service during a major San Francisco power outage when vehicles became immobilized. Waymo has said its data show significantly fewer pedestrian injury crashes than human drivers and that safety remains central to its strategy. Other developers are also preparing customer-facing launches in 2026, with Lucid and Nuro planning to offer self-driving vehicles for Uber riders in San Francisco and additional global markets. With multiple deployments expected next year, 2026 could provide clearer signals on whether robotaxi technology can translate into sustainable earnings over time.