Driverless valuation race picks up pace: Waymo “worth $175 billion”

That’s according to Morgan Stanley. Of the $175 valuation, $80 billion come from Waymo’s Uber-like ride-hailing service, and $90 billion from “logistics,” most notably driverless trucking services.

“Partnerships with Walmart, DDR Corp. and Peterbilt speak to Waymo’s logistics focus,” Morgan Stanley analyst Brian Nowak says, adding it should allow the company to better compete with Amazon on the logistics front. “On long-haul, we see Waymo’s autonomous technology addressing the global truck driver shortage and leading to 30-50% lower trucking costs and higher utilization. Our Waymo model assumes logistics revenue reaches ~$330 billion by 2040, 8% of the addressable global freight market.”

Upgrading how we transport people and things will be worth several trillions of dollars a year (see our book for greater detail). Whether Waymo captures a significant portion of this remains to be seen.


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