Alphabet's autonomous vehicle company Waymo is significantly ramping up its robotaxi operations with plans to add thousands more vehicles to its fleet over the next two years. As the company continues to expand into new markets, this fleet growth represents a major step toward making autonomous ride-hailing services more widely available across the United States.
Current Fleet Operations
Waymo currently operates a fleet of 1,500 Jaguar I-PACE electric SUVs across four major markets: Phoenix, San Francisco, Los Angeles, and Austin. These vehicles are providing over 250,000 paid rides per week, with each robotaxi averaging about 24 rides per day—significantly more utilization than typical personal vehicles. The company's Phoenix operation, its longest-running service area, has become particularly notable with driverless Waymo vehicles regularly picking up passengers at Sky Harbor airport alongside traditional rideshare services.
Production Facility
The company's 239,000-square-foot factory in Mesa, Arizona, which opened in October, serves as the central hub for converting standard Jaguar I-PACE vehicles into fully autonomous robotaxis. The facility, operated in partnership with automotive engineering company Magna International, has replaced a smaller Detroit assembly facility that closed at the end of 2024. According to Kent Yiu, Waymo's head of vehicle manufacturing, the Mesa factory is designed to eventually produce tens of thousands of robotaxis annually to support the company's five-year growth projection.
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| A completed Waymo robotaxi drives out of the factory to go into service in the Phoenix areaWaymo |
Expansion Timeline
Waymo has announced it will add 2,000 more vehicles to its fleet by 2026, bringing the total to 3,500 robotaxis. This represents a significant scaling of operations, though it falls well short of an earlier projection that envisioned 20,000 I-PACE vehicles operating as robotaxis. The company is currently preparing to launch in Atlanta this summer, with Miami and Washington, D.C. planned for 2026. Waymo is also conducting testing in Nashville and Tokyo, indicating potential future expansion markets.
Vehicle Models
While the Jaguar I-PACE has been Waymo's primary vehicle since retiring its Chrysler Pacifica minivans in 2023, the company has recently received its final delivery of I-PACEs. These vehicles will be retrofitted at the Mesa facility before joining the fleet. Looking ahead, Waymo is testing and validating two new models: the Hyundai Ioniq 5 electric hatchback, which will be produced at Hyundai's new Ellabell, Georgia plant, and the all-electric Zeekr RT minivan from China's Geely Group. The Zeekr RT will feature Waymo's sixth-generation autonomous driving system starting in 2026.
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| Waymo has begun testing Zeekr electric vans with its autonomous tech, but the Chinese model faces steep US tariffsWaymo |
Manufacturing Process
The Mesa factory employs a methodical approach to converting standard vehicles into robotaxis. Workers remove exterior components to install electrical wire harnesses, computers, and sensors at each corner of the vehicle, plus Waymo's distinctive top hat unit housing lidar, cameras, and audio sensors. After reassembly and adding Waymo badging, each vehicle undergoes calibration tests including short drives to ensure all systems function correctly. The company is working to increase efficiency, with plans to double the current production rate of six vehicles per shift and eventually add automated assembly lines.
Financial Implications
As Waymo scales its operations, the financial outlook appears increasingly promising. With its current fleet of 1,500 vehicles providing 250,000 rides weekly, a fleet expansion to 10,000 vehicles could potentially generate 1.5 million rides weekly. This could translate to annual revenue approaching USD 2 billion, up significantly from an estimated USD 100 million in 2023. After nearly 16 years of development and over USD 11 billion in funding rounds, Waymo appears to be transitioning from an expensive research project to a viable commercial enterprise.
Future Directions
Beyond expanding its robotaxi service, Waymo is exploring additional business models. The company recently announced a partnership with Toyota to design next-generation autonomous vehicle platforms and study how Waymo's system could be implemented in personal vehicles. This partnership represents a potential new revenue stream through technology licensing. Meanwhile, Waymo faces emerging competition, including from Tesla, which plans to launch its own robotaxi service in Texas and California later this year.