Waymo IPO:

Waymo develops autonomous-driving technology designed to reduce certain risks associated with human driving and expand access to transport. The company develops automated driving software and currently operates as a robotaxi service.

Despite representing a major technological shift in transport technology, Waymo is a long way from widespread adoption.

The company is a private subsidiary of Alphabet Inc. (the parent company that owns Google). Alphabet has historically been Waymo’s principal shareholder and an important source of funding. Waymo also brings in outside institutional investors, such as Sequoia Capital, DST Global, and Andreessen Horowitz.

Given that Waymo is one of the most established companies in the autonomous driving sector, a listing could attract significant investor interest.

What is Waymo?

Waymo began as a secret Google project in January 2009 known as the ‘self-driving car project’, which wasn’t revealed until October 2010. It was originally led by Sebastian Thrun, the co-inventor of Google Street View.

In 2016, the project became known as Waymo, a name that stands for ‘a new way forward in mobility’. Since then, Waymo has developed software, sensors, mapping systems, and artificial intelligence that allow equipped vehicles to operate autonomously within approved operating areas and conditions.

The company does not manufacture vehicles. Instead, it partners with vehicle manufacturers such as Jaguar and Zeekr to integrate its autonomous driving technology into vehicles developed by those partners.

Waymo aims to use autonomous driving technology to reduce the risk of crashes associated with human error and improve mobility access. The company has also stated that the technology is designed to support greater independence for people who may face challenges with traditional driving, including some seniors and individuals with disabilities.

As of 2026, ride-hailing is Waymo’s primary commercial focus. On 26 March 2026, the company announced on X that it had doubled its paid rides per week in less than a year, with 500,000 paid rides weekly. The company provides rides through the Waymo One app.

In the future, Waymo hopes to bring its technology to personally owned consumer vehicles. It may pursue this through partnerships with vehicle manufacturers, although its future consumer model has not been confirmed.

Waymo has several competitors, including Tesla and the Amazon-owned Zoox. On 2 February 2026, the company announced it had raised $16 billion in a Series D funding round, giving Waymo a post-money valuation of $126 billion.

Why might Alphabet consider a Waymo IPO?

Alphabet has traditionally funded Waymo internally while also securing investment from external partners. If Waymo were to pursue an IPO, a public listing could provide an additional source of capital to support the expansion of its robotaxi service across multiple cities. The proceeds could be used to expand its fleet, enter new markets, and invest in research and development. Raising capital independently could also provide Alphabet with greater flexibility in how it allocates funding.

An IPO could benefit Waymo and its shareholders in several other ways. Currently, Waymo sits alongside Google’s search business, YouTube, Google Cloud, and other Alphabet companies. Being part of the same group makes it difficult for investors to determine how much each company is worth individually.

By listing Waymo as a separate public company, investors could value its autonomous-driving business independently. If the market places a high value on a Waymo spinoff, it could highlight value that isn’t fully reflected in Alphabet’s overall share price.

Evaluating Waymo’s IPO potential

Like any speculative IPO, it’s impossible to say whether or not Waymo could become one of the biggest technology IPOs. However, there are a few signs that suggest that a future public offering could attract significant investor interest.

Waymo’s current valuation

Waymo achieved a valuation of $126 billion early in 2026. This was more than double its valuation in late 2024, when it was valued at $45 billion. The increase may reflect investor confidence in the company’s commercial prospects and the broader potential of autonomous driving technology.

Waymo’s commercial deployment and testing experience

Waymo has accumulated extensive real-world testing experience and has expanded paid commercial services across several US markets. The company is expanding its commercial operations while many of its competitors remain in the early deployment stages.

Autonomous driving has long-term commercial potential

Autonomous driving is projected to scale into a multi-trillion-dollar market. Ride-hailing, logistics, and delivery services are likely to increasingly adopt driverless technology over the coming decades. However, the sector also presents risks, such as regulatory hurdles and high capital costs.

How would a Waymo IPO work?

If Waymo were to announce an IPO, the process would follow the standard route that companies follow when listing on a major exchange.

The listing entity would typically file registration documents with the US Securities and Exchange Commission. The company and its underwriters would then assess investor demand and agree an offer price before trading begins.

Investor demand, share allocation, and access for retail investors would depend on the structure of the offering and the market conditions at the time. IPO allocations sometimes involve a range of investors, including both retail and institutional participants. However, the specific process would only become clear if a listing were announced. Following a public listing, Waymo’s share price could experience volatility.

The risks of a Waymo IPO

A Waymo IPO would generate significant investor interest. However, it would also present a range of risks that prospective investors may consider.

Profitability remains uncertain

Waymo’s future profitability may depend on its ability to scale commercial operations while managing significant costs associated with software development, fleet operations, and geographic expansion.

If Waymo goes public, investors would need to value the company based on its future growth potential rather than its present earnings. Even if the growth potential is promising, it can still fall short of expectations.

Regulation could slow expansion

Waymo operates in a highly regulated industry. Before it can expand to other locations, it must secure approval from local and national regulators. Requirements will vary from one city to the next.

Regulatory rejections or approval delays would impact expansion plans and investor sentiment. Regulations can also change over time.

Competition is intensifying

Waymo was the first company to offer a fully autonomous ride-hailing service to the public. However, early market entry does not necessarily guarantee long-term competitive advantage. Competitors such as Tesla, Zoox, and Aurora are investing heavily in the sector. At the same time, traditional automotive manufacturers are increasing their autonomous capabilities.

Maintaining its competitive position may require continued investment in innovation, infrastructure, and operational expansion.

IPOs can be volatile

If Waymo were to list, its shares could experience volatility, particularly during the initial trading period. Many tech IPOs attract strong investor demand during their early days of trading. However, enthusiasm can quickly wane if valuations are considered too ambitious or financial results disappoint.

What should investors watch? 

While there has been no official announcement, several developments could indicate whether or not Waymo is moving closer to going public.

Investors may monitor Waymo’s:

●       Expansion into new cities

●       New partnerships with automotive manufacturers

●       Growth in weekly paid autonomous rides

●       Funding rounds involving external investors

How can investors gain exposure today?

Until Waymo becomes publicly traded, investors cannot gain direct exposure to the company.

Investors following the company’s development may consider investing in Alphabet to gain indirect exposure to Waymo’s progress. However, Alphabet shares represent ownership in the wider Alphabet group rather than Waymo alone.

If Waymo eventually lists publicly, investors may be able to trade the underlying shares and CFDs through participating brokers. However, this would be subject to market availability.

Conclusion

Waymo could pursue a public listing in the future, although neither Waymo nor Alphabet has announced plans to do so.

If Waymo were to pursue a public listing, investor interest would depend on factors such as market conditions, the company’s valuation, and the broader sentiment towards autonomous driving technology. However, Waymo’s operational progress would not guarantee shareholder returns. The company’s future performance would depend on profitability, competition, and execution risks.

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