Business Tech

In what ways is Google Waymo a threat to Tesla and its Self Driving Technology?

Waymo at present has a private valuation that is twice as high as Tesla.

How can this be?

Margins! Tesla is focused on the full production of the car where Waymo is focused purely on the underlying technology with self driving cars. Thus, Waymo will have a Gross Margin that is extremely high in comparison to Tesla.

Eric Schmidt talked about this a lot. How Google and its products always wanted to be focused on providing the technology sub stack instead of the full product as it keeps margins at a high level and thus maximising value.


If Google owns Waze, and Waze is even better than Google Maps, then why doesn’t Google combine them?

Google Maps has long been my favourite maps platform. However, Waze is widely used by my friends. Google owns both Maps and Waze, but why don’t they combined the two platforms?

Simple – There are two distinct use cases.

Use Case One: Help me Find a Destination

Use Case Two: Help me in my regular commute

Google has made a very good decision on keeping them separate. It’s seems to be the right decision.