The potential revenue that Google can generate from driverless technology is significant. According to a report by McKinsey & Company, the autonomous vehicle industry could be worth up to $1.5 trillion by the year 2030. Google, through its subsidiary Waymo, is one of the leading players in this industry and is expected to capture a significant share of this market. One of the main revenue streams for Google in the driverless technology space is likely to be through the licensing of its technology to other automakers. This would allow these companies to incorporate Google's driverless technology into their own vehicles, without having to develop the technology in-house. Waymo has already signed partnerships with several automakers, including Fiat Chrysler and Jaguar Land Rover, to provide them with its self-driving technology. Another potential revenue stream for Google is through the operation of its own fleet of driverless taxis. Waymo has already launched a pilot program in Phoenix, Arizona, where it is offering rides to the public in its self-driving taxis. If this program is successful, Google could expand its taxi service to other cities, generating revenue through passenger fares. Overall, the potential revenue that Google can generate from driverless technology is significant, and the company is well-positioned to capture a significant share of the autonomous vehicle market.
Strategy/Estimation