Waymo Works To Build Trust As First Pilot-Free Vehicle Hits The Road

Last week, Alphabet Inc GOOGL GOOG’s Waymo became the first to test fully autonomous vehicles on public roads without a front-seat technician.

The firm still faces challenges in public perception and regulation, but it’s taking strides with education partnerships, data transparency and training opportunities.

The Expert

Andrew Murphy researches consumer habits and product marketing as a managing partner at Loup Ventures. The venture capital firm does not issue ratings and price targets.

The Thesis

A recent AAA survey revealed consumer skepticism of self-driving technology, with an acceptance rate of only 20 percent, according to Loup Ventures.

To address the non-technical barriers to market, Waymo has partnered with community groups such as the National Safety Council, the Foundation for Senior Living, Mothers Against Drunk Driving, the Foundation for Blind Children and East Valley Partnership, Murphy said in a note. 

It has also published an extensive safety assessment, hosted test drives, and collaborated with law enforcement and first responders to train for proper interaction between emergency and self-driving vehicles, the analyst said. 

“Between a groundbreaking and successful test, and a new level of transparency focused on building trust and engaging the public, we believe Waymo has earned its pole position in the race for autonomy,” Murphy wrote, anticipating fleet deployment as Waymo’s likely next step.

Price Action

Since posting a massive bottom-line beat at the end of October, Alphabet has traded around or above $1,040. Last week, it struck an all-time high of $1,063.62.

At the time of publication, shares were trading at $1,043.44.

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Photo courtesy of Waymo.