Legacy ride-hailing services Uber Technologies Inc (NYSE:UBER, ETR:UT8) and LYFT Inc fell sharply on Thursday on news the fully autonomous ride-hailing disruptor Waymo is expanding its fleet to new areas.
Waymo, which is owned by Google parent Alphabet Inc (NASDAQ:GOOG), announced the plans to expand its autonomous ride-hailing service, Waymo One, to Miami, with operations set to begin in 2026.
The company will use its all-electric Jaguar I-PACE fleet in partnership with Moove, a fleet management and mobility solutions provider.
This collaboration will first be implemented in Phoenix, where Moove will begin managing the fleet, before expanding to Miami.
Ladi Delano, co-founder and co-chief executive of Moove, said: "Ride hailing has transformed urban mobility over the past 15 years, yet the core experience has largely remained unchanged.
“Waymo’s safe, reliable, and convenient Waymo One service leads in autonomous technology, and together, we’re driving a major shift in urban mobility.
Moove is proud to partner with Waymo, bringing the operational expertise to make this transformation possible."
Miami’s Mayor Francis Suarez, welcomed Waymo’s arrival, stating: “Fully autonomous driving technology offers a safe and convenient option to the people of Miami.
“I’m so pleased to welcome Waymo to our city. Waymo’s commitment to sustainability with their all-electric fleet is the perfect mobility option to our city as we continue to prioritise low cost, clean energy.”
Uber shares fell by 9.6% and Lyft by more than 10% in response to the news.
Barely 15 years ago, Uber upended the taxi industry worldwide with its cheaper, quicker and more convenient ride-hailing technology.
But with Waymo and Tesla Inc (NASDAQ:TSLA) making serious headway with their fully autonomous ride-hailing tech, it seems the disruptor is at risk of becoming the disruptee.