Waymo rides cost more than Uber or Lyft — and people are paying anyway

The article examines the pricing dynamics of Waymo’s autonomous ride-hailing service compared to traditional options like Uber and Lyft, based on a month-long data analysis in San Francisco by the app Obi. Contrary to the expectation that robotaxis would be cheaper due to lower labor costs, Waymo rides were found to be consistently more expensive, averaging $20.43 per ride compared to Lyft’s $14.44 and Uber’s $15.58. During peak hours, Waymo’s prices were about $9.50 to $11 higher than its competitors. Despite the higher cost, consumer demand remains strong, driven by excitement for the technology and a preference for driverless vehicles. The pricing variability of Waymo rides was also greater than Uber or Lyft, attributed to Waymo’s less sophisticated pricing model and a relatively fixed vehicle supply, resulting in a more direct supply-and-demand pricing approach. This model causes short trips to be disproportionately expensive—Waymo’s short rides cost roughly 31-41% more