Waymo Secures $5 Billion Loan for Robotaxi Expansion
Waymo has closed a $5 billion term loan, its first debt deal, to fuel robotaxi growth. Previously, the Alphabet-owned company relied solely on equity and investor funding.
Pimco, Blackstone, and Sixth Street led the loan, with ten other lenders joining, including Goldman Sachs as bookrunner. The loan, initially sought at over $3 billion, priced at 5.25 percentage points above the benchmark rate, according to Bloomberg.
The funds will be allocated towards expanding Waymo's driverless ride-hailing service across the US and globally. Steve Fieler, Waymo's CFO, stated in a blog post:
"Our strong momentum has enabled us to complement our equity financing with debt, providing additional financial flexibility to strengthen our balance sheet."
Recent Growth and Developments:
- Waymo opened in Las Vegas, its 15th US city, and has targeted new international locations, including Munich (2027) and Singapore (2028).
- In August, Waymo unveiled its custom-built chip for robotaxis.
- The company has faced regulatory scrutiny, with investigations into its robotaxis' behavior around school buses and a hit-and-run incident involving a child.
Cristian Dina, CRO at The Next Web, contributed to this report.