Earlier quoted context omitted.
It's based on public comments about the per-mile cost of Cruise and Waymo, and the fact that Waymo is currently operating in only a tiny number of areas. Expansion greatly dilutes the fixed costs, and iterating on the hardware will drive down the marginal/capital costs. Amazon made no profit for many, many years, but that's because they were re-investing all their revenue. No one doubted that they could have turned a…
>Expansion greatly dilutes the fixed costs Where is the actual evidence of this, though? I'm not trying to be snide -- genuinely curious. Waymo is expanding -- their service areas (and operating times) have expanded in SF and Phoenix. There's a waitlist in LA and Austin. Yet Waymo's financials are still buried in Alphabet's "Other Bets" line, which lost $1.2 billion in Q3 2023. You think Google, which has been catchi…
(Also Google is bad at full commitment, and I don't know how much that extends to Alphabet, but they as a company seem pathologically incapable of putting even a majority of their weight behind anything, which is a significant source of failures for them)