Waymo Raises $16bn as Self-Driving Cars Prepare for London Launch

Alphabet-owned autonomous vehicle firm Waymo has raised $16bn (£12.6bn) in fresh funding, valuing the business at $126bn, as it moves closer to launching its self-driving service in London.

The investment round was led by Dragoneer, DST Global and Sequoia, and comes as Waymo ramps up preparations for its UK debut. The company’s vehicles have already been spotted testing on London streets ahead of a planned passenger launch.

London is expected to be one of more than 20 new cities Waymo plans to enter globally by 2026, alongside locations including Tokyo. The company said the funding reflects its transition from experimental trials to large-scale commercial operations, after tripling annual ride volumes to 15 million last year.

Waymo currently operates more than 400,000 paid robotaxi journeys each week across six US cities. To date, its autonomous vehicles have logged 127 million miles, with the company claiming a 90% reduction in serious injury crashes compared with human drivers.

UK rollout gathers pace

In the UK, ministers have publicly supported autonomous vehicle trials as part of efforts to modernise transport networks and attract international technology investment. Government figures have also suggested that London’s congestion charging and low-emission zones make the capital a suitable testing environment for self-driving vehicles.

Waymo has confirmed it is testing vehicles in the city ahead of a passenger launch, which would make the UK its second international market after Japan.

However, the London rollout comes amid increased scrutiny in the US. Waymo is currently facing investigations by American safety regulators following incidents involving school buses in Texas. While the company said no collisions occurred, it has carried out a voluntary software update affecting more than 3,000 vehicles. The outcome of these probes is likely to be closely watched by UK regulators as they consider approval.

Big Tech ambitions

The latest funding round has also reignited debate about Waymo’s long-term position within Alphabet, which now has a market capitalisation exceeding $4tn. Just five years ago, Waymo was valued at around $30bn, highlighting the rapid rise in investor confidence as autonomous driving becomes a core part of Big Tech’s growth strategy.

Competition in the sector is intensifying, with rivals including Tesla continuing to push forward with their own robotaxi plans.