Google-Backed Waymo (GOOGL) Is Quickly Gaining Market Share in Austin
Google-backed Waymo (GOOGL) is making a strong impression with its new robotaxi service in Austin, Texas. According to data from YipitData, the autonomous rides accounted for 20% of Uber's (UBER) total rides in the city during the last week of March. This shows that many riders were more open to the idea of trying the driverless Uber option than some analysts had expected. The data also revealed that Waymo delivered over 80% more driverless rides in the first 27 days in Austin than it did in the early rollout in San Francisco.
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Venture capital firm A16z's Alex Immerman noted that Waymo had already captured 22% of the rideshare market in parts of San Francisco by last November, which matched Lyft (LYFT) and cut into Uber's lead. He added that although Waymo currently has longer wait times due to fewer cars, customers are choosing it for the clean, quiet, and premium experience.
Interestingly, Waymo now operates in five major U.S. markets: Phoenix, San Francisco, Los Angeles, Austin, and parts of Silicon Valley. In addition, analysts say that the U.S. and global robotaxi markets are large enough to support multiple leaders. It is also worth noting that in the U.S., future competition for Waymo may come from Tesla (TSLA) and Amazon's Zoox (AMZN), while Baidu (BIDU), WeRide, and Pony AI are leading the way internationally.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GOOGL stock based on 27 Buys and 10 Holds assigned in the past three months. Furthermore, the average GOOGL price target of $205.15 per share implies 31% upside potential from current levels.
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