Waymo revenue diversification beyond ride-hailing: options and recommendation

Quick Overview

An autonomous driving company is asked to monetize beyond its consumer ride-hailing service. The question tests strategic product thinking: assessing technology strengths and operating weaknesses, comparing options such as licensing, delivery, institutional transit services and in-vehicle services, and recommending a sequenced plan with metrics.

Waymo revenue diversification beyond ride-hailing: options and recommendation

Company: Google

Role: Product Manager

Category: Product Design & Strategy

Difficulty: medium

Interview Round: Other

Waymo, the autonomous driving company, runs a consumer ride-hailing service today, and its leadership wants it to monetize beyond that service. You are the product manager. What should Waymo do? Lay out a strategy and recommend a direction. ```hint Separate the asset from the product Waymo owns a driving technology as well as a consumer ride service. Consider what could be sold, reused or extended, including offerings for other customers, without relying on the consumer ride-hailing app. ``` ### Clarifying Questions - What time horizon applies, and is the goal to maximize revenue, margin or strategic position? - Must the answer stay within Waymo's own products, or may the driving technology go into new products or partner offerings? - Are there limits on capital, fleet size or the cities where vehicles may operate? - Should the new revenue avoid taking vehicles away from the existing ride service? ### What a Strong Answer Covers - A stated goal and horizon, plus an honest view of Waymo's strengths and weaknesses. - A broad set of options that differ in customer and in how much operating work Waymo takes on, not variations of a single idea. - Explicit comparison criteria and a committed recommendation with reasons. - Sequencing, dependencies, and how the choice interacts with vehicles that also serve rides. - Success metrics and the main risks, including safety and regulation. ### Follow-up Questions - If the same vehicle can take a delivery job or a ride request, how would you decide between them in the moment? - What would make you switch from partnering with others to operating the new service yourself? - What evidence from a first pilot would tell you to stop?

Overview: An autonomous driving company is asked to monetize beyond its consumer ride-hailing service. The question tests strategic product thinking: assessing technology strengths and operating weaknesses, comparing options such as licensing, delivery, institutional transit services and in-vehicle services, and recommending a sequenced plan with metrics.

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Google
Oct 13, 2024
mediumProduct ManagerOtherProduct Design & Strategy
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Waymo, the autonomous driving company, runs a consumer ride-hailing service today, and its leadership wants it to monetize beyond that service. You are the product manager. What should Waymo do? Lay out a strategy and recommend a direction.

Clarifying Questions Guidance

  • What time horizon applies, and is the goal to maximize revenue, margin or strategic position?
  • Must the answer stay within Waymo's own products, or may the driving technology go into new products or partner offerings?
  • Are there limits on capital, fleet size or the cities where vehicles may operate?
  • Should the new revenue avoid taking vehicles away from the existing ride service?

What a Strong Answer Covers Guidance

  • A stated goal and horizon, plus an honest view of Waymo's strengths and weaknesses.
  • A broad set of options that differ in customer and in how much operating work Waymo takes on, not variations of a single idea.
  • Explicit comparison criteria and a committed recommendation with reasons.
  • Sequencing, dependencies, and how the choice interacts with vehicles that also serve rides.
  • Success metrics and the main risks, including safety and regulation.

Follow-up Questions Guidance

  • If the same vehicle can take a delivery job or a ride request, how would you decide between them in the moment?
  • What would make you switch from partnering with others to operating the new service yourself?
  • What evidence from a first pilot would tell you to stop?