Waymo Gaining More of the Rideshare Market in San Francisco

What Happened?

Waymo is gaining an increasing portion of the rideshare market in several U.S. cities based on the available data. According to venture capital firm A16Z, Waymo had 22% of the rideshare market in San Francisco by November of 2024 and is equal to Lyft there in terms of market share. 

According to Zach Shahan of Cleantechnica, Waymo’s first month of operation in Austin, Texas, grew 80% faster than San Francisco. Waymo has also announced plans to begin testing driverless technology in ten new cities in 2025, including San Diego and Las Vegas. Though self-driving taxi service will not be immediately available in those locations.

Why it Matters

Customer reviews for Waymo have been overwhelmingly positive. Rides from self-driving taxis have been described as smooth, efficient, and pleasant. For those who don’t want the social pressure of interacting with a human driver, a driverless ride can be an appealing alternative. Waymo’s growth in cities like San Francisco and Phoenix have made the company well positioned for roll outs in additional cities.

Waymo plans to begin testing in San Diego, Las Vegas, and eight other U.S. cities in 2025. According to public statements from the company, testing will involve test cars being manually driven around those cities for an unspecified period of time before switching them over to the full self-driving capability. 

According to Evercore, the global self-driving taxi market, which is around $1 billion now, could grow to more than $2 trillion over the next decade. One of the factors driving that growth is the continued trend of fewer young people getting driver’s licenses than previous generations. In addition, young people who do get their driver’s license aren’t buying as many cars, which makes them more dependent on ride sharing services, whether human or autonomous. 

Another factor is age. As the average age of the population increases, more people who lose the ability to operate a motor vehicle due to medical problems associated with aging, like vision loss, will need an alternative form of transportation. Since family and friends aren’t always available to give them a ride, autonomous ridesharing services, like the one Waymo offers, could be ideally suited to meet the needs of that expanding demographic. 

These factors taken together add up to a bright future for rideshare services, and the current growth supports that assessment. 

How it Effects You

Self-driving taxis and rideshares can be advantageous not only to the very young or old but also for those in between. People who use self-driving vehicles can focus on work or leisure while riding instead of having to pay attention to the demands of operating the car themselves.