Waymo, the prominent player in the robotaxi industry, has announced an exciting new collaboration with Toyota, the world's largest automaker. This partnership aims to design a cutting-edge platform specifically for autonomous cars and trucks, as well as explore innovative methods to adapt Waymo's advanced automated driving technology for personal vehicles. This strategic alliance comes shortly after Alphabets CEO, Sundar Pichai, hinted at a potential future where Waymo's technology could be utilized for individual car ownership.

In a joint statement, Hiroki Nakajima, Toyotas executive vice president, emphasized the shared commitment between the two companies. He noted, We share a strong sense of purpose and a common vision with Waymo in advancing safety through automated driving technology. Nakajima expressed optimism that this collaboration would enable their solutions to reach a broader audience globally, ultimately helping to create a zero-accident society.

For some time, Toyota has been investing in its own in-house program dedicated to the development of autonomous vehicles, progressively integrating advanced driver-assist features into both the Toyota and Lexus product lines. However, the automaker has yet to announce any plans for launching its own robotaxi service, which sets the stage for Waymo's expertise in this domain.

Meanwhile, Waymo continues to expand its partnerships within the automotive industry. The company is working with Hyundai Motor, which plans to supply Waymo with its electric Ioniq 5 hatchbacks later this year, contributing to the rapidly growing robotaxi fleet. During a recent earnings call, CEO Sundar Pichai was asked about Waymo's long-term growth strategy and mentioned the idea of future optionality around personal ownership. This comment alluded to a vision first discussed by former Waymo CEO John Kracik back in 2018, although there has been limited communication on the matter since then.

Currently, Waymo is experiencing significant growth, booking over 250,000 paid robotaxi rides weekly across various cities including Phoenix, San Francisco, Silicon Valley, Los Angeles, and Austin. The company is gearing up to extend its services to additional markets such as Atlanta, Miami, and Washington, D.C., and it is also testing its electric Jaguar I-PACE SUVs in Nashville and Tokyo.

By collaborating directly with Toyota on an autonomous vehicle platform, both companies could potentially lower the operational costs of such vehicles, thereby enhancing their profitability. If Waymo's technology is made accessible for personal vehicle usedifferentiating itself from competitors like Tesla, which still relies on some level of human monitoringit could be offered as a subscription service. This would not only provide a new revenue stream for Waymo but also complement its existing robotaxi business.

As Adam Jonas, an equity analyst at Morgan Stanley, aptly pointed out, Having the world's largest auto company join forces with the world's largest robotaxi firm, backed by the world's largest search engine company, is a formidable combination. The scope of the collaboration between Waymo and Toyota is set to evolve through ongoing discussions, although no financial specifics have been disclosed regarding this partnership. A Waymo spokesperson did not immediately comment on the matter.