Waymo plans to grow its self-driving fleet from about 4,000 cars to 20,000 by the end of next year, using a recently borrowed $5 billion, Semafor reported, citing people familiar with the plans. The company is expanding across US cities and preparing to enter Toronto.
Waymo intends to more than double its vehicle count to 8,000 by the end of this year and reach 20,000 by the end of 2027, according to Semafor, which said it spoke to people familiar with the matter. The company declined to comment to Semafor on the specific targets.
Waymo has said on its website that the $5 billion it borrowed was to support growth internationally and in the United States. The debt, raised from private credit lenders, was Waymo's first and came without guarantees from Alphabet, its parent company. Under the terms of the deal, Waymo can use its fleet in future to borrow more by securitizing leases, Semafor reported.
The company operates in 15 US cities and is adding Toronto. It recently opened a facility in Nashville, in partnership with Lyft, where cars can be charged, cleaned and maintained. Waymo has ordered thousands of cars from China, the New York Post reported, and it has rebranded versions of a vehicle made by Zeekr, a subsidiary of Chinese automaker Geely Holding Group.
Analysis
Why This Matters
- A jump from 4,000 to 20,000 vehicles would mark a major scaling step for the robotaxi industry, moving driverless ride-hailing from city-by-city pilots toward a large commercial operation.
- The debt deal is a test of whether autonomous vehicle fleets can be financed on their own, without backing from a deep-pocketed parent company.
- Expansion into Toronto and more US cities puts the service in front of new regulators, riders and local governments at a faster pace than before.
Background
Waymo is Alphabet's self-driving car unit and already operates commercial robotaxi services in US cities. The expansion plans come as autonomous ride-hailing is becoming more competitive, and as cities and regulators continue to weigh the safety, traffic and employment questions raised by driverless fleets.
Key Perspectives
Waymo: The company frames the new borrowing as funding for US and international growth. Its plans point to rapid scaling of its robotaxi fleet across 15 US cities and Toronto, supported by operations partnerships such as the Nashville facility with Lyft.
Lenders: Private credit lenders advanced $5 billion without guarantees from Alphabet, indicating confidence in the fleet as a source of future revenue. The agreement also allows Waymo to borrow more by securitizing leases, giving it a financing path for further expansion.
Competitors and regulators: A fast-growing driverless fleet raises familiar questions for cities and rival ride-hailing operators about safety oversight, street use and public acceptance, though Semafor's report did not include specific criticism.
What to Watch
- Whether Waymo hits its near-term targets of 8,000 vehicles by the end of this year and 20,000 by the end of next year.
- The launch in Toronto and whether the Nashville facility with Lyft becomes a template for other cities.
- Any future borrowing backed by lease payments from the fleet, after the first private credit deal without Alphabet guarantees.