Never Stop Driving #108: Meanwhile, over at Google

Although I've spent the last few months celebrating a renewed appreciation for the love of driving and the automotive industry's support for road racing, autonomous vehicles are still a thing. Alphabet, the parent company of Google and YouTube, recently committed an additional $5 billion to Waymo, its autonomous taxi company.

Waymo's slow and methodical growth curve seems to be well in the lead, especially in the U.S., where the company now offers robotaxis in four cities: San Francisco, Phoenix, Austin, and Los Angeles. Unlike Uber and Cruise, which both suffered PR nightmares after accidents, Waymo seems to have avoided similar pitfalls.

But there are still plenty of Waymo crashes. Two months ago, a Waymo taxi in Phoenix inexplicably drove into a pole on its way to picking up two passengers, who ordered up another Waymo, which then got stuck behind the first. The local news reported several strange Waymo incidents. In this video, a Phoenix police officer pulled over a driverless taxi after it drove into oncoming traffic. We are in interesting times.

In her Q2 2024 shareholder letter, General Motors CEO Mary Barra celebrated that Cruise, GM's driverless car division, had restarted operations and revealed a new strategy whereby future Cruise taxis will be based on the Chevy Bolt rather than a custom-made car, which would reduce costs. The business model for these autonomous taxis remains uncertain.

Alphabet, via Waymo, has spent some 15 years and tens of billions developing the technology. Automotive News reported that a Waymo taxi costs deep into six figures as compared to the roughly $30,000 a human Uber driver pays for their car. Is there a profit in the future?

Alphabet is unique because it can afford to fund Waymo. In 2023, Alphabet cleared some $75 billion, which made it one of the most profitable companies in the world. That's what happens when a company is allowed to operate what is basically a monopoly to index the internet. If I sound cranky here, it's because I've watched Alphabet hoover up the advertising which gutted the media industry, where I work. Furthermore, businesses are now overly reliant on the black-box Google algorithm to steer consumers to their websites. Nobody but Google knows how that box works, and according to this article, the company often lies about it. The nonpartisan nonprofit foundation Open Secrets figures Alphabet spent nearly $15 billion on lobbying in 2023.

Excuse my foray into politics, but the topic is impossible to avoid because cars and transportation are so heavily regulated. In the race to develop autonomous technology, it's hard to imagine how another company can afford to catch up to Waymo, which shows no signs of pulling back. As many have long imagined, the geographic operational areas for autonomous cars will grow over time. I used to think that by the year 2030 there will be no human drivers allowed in Manhattan. I still think that will happen but don't think I'll see it in my lifetime.

In the near term, we'll see more autonomous features embedded in human-driven cars. When Ford and VW shut down Argo AI, a Ford representative told me that many of Argo's engineers brought their knowledge to the Blue Oval. That's one reason the Ford F-150 is available with Blue Cruise, which allows drivers to take their hands off the wheel in certain conditions. Many automakers, including GM, offer similar technology.

This past weekend, I rode in a friend's F-150 from Michigan to Road Atlanta Raceway and back. His truck has Blue Cruise and I used it often. A camera watches the driver to make sure they are still looking at the road. The system frequently prompted me to either watch the road, put my hands on the wheel, or take over driving. The dash graphics and interface are easy to understand. At times, the system drove past a semi with mere inches between the two vehicles, which was harrowing-I kept my hands at the ready.

During a nighttime rainstorm in the mountains, Blue Cruise mostly kicked the driving back to me. Perhaps the conditions were too uncertain. During the long and monotonous stretches of Ohio plains, I was happy to let Blue Cruise take over so I could relax a bit and look around. I wondered if I'd be more rested when I arrived, but I don't think I was. That doesn't mean I wouldn't gladly use the system if my own truck had it.

I've never been against autonomous cars. There are times I'm fine with not driving, like on I-75 in Ohio. I just want to be able to drive when I want to. My optimistic view at this mid-2024 juncture is that we'll all be driving long into the future. If you'd like to support Hagerty's efforts to promote the love of driving, please join the Hagerty Drivers Club.

We've had a busy month at Hagerty Media. Here are a few highlights to get you through the weekend:

• This 30-year-old woman is a professional Ferrari mechanic.
• Is Maserati for sale?
• Ageless John L. Stein rediscovers the freedom of exploring the woods on two wheels.
• Please buy this Corvette so I don't have to.
• Can Hagerty's Davin Reckow get this 1962 Dodge running?

Don't forget to get out and drive this weekend!

Larry

P.S.: Your feedback and comments are welcome.

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