Strategy question
Waymo is being asked to monetize beyond the ride-sharing use case. What should they do?
- Strategy
- Hard
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What this question tests
Tests strategic thinking on diversifying revenue for a capital-intensive autonomous vehicle business beyond its core service.
How to approach it
- Assess Waymo's core assets: the self-driving software stack, sensor and mapping data, and a fleet of AV hardware.
- Brainstorm adjacent revenue lines: licensing the driving stack to automakers, selling high-definition mapping and localization data, and autonomous freight or last-mile delivery.
- Prioritize licensing the driving stack to automakers as the fastest path, since it monetizes existing IP without needing new fleet capital.
- Sequence the plan: start with a freight or delivery pilot using existing vehicles as proof, then pursue automaker licensing deals with that safety record.
- Define success as licensing deals signed, freight revenue per mile, and reduced capital burden relative to the ride-sharing business alone.
What a strong answer includes
- Ties every idea back to Waymo's actual assets, the software stack and safety data, instead of generic diversification ideas.
- Picks a clear priority, stack licensing, with a stated rationale, faster monetization without new fleet capital.
- Sequences the plan logically, proving safety through freight before pursuing bigger licensing deals.
Common mistakes
- Proposing ideas unrelated to Waymo's actual technology or data assets.
- Not prioritizing among the ideas or giving a sequencing rationale.
Likely follow-up questions
- Which automaker would you approach first for a licensing deal, and why?
- How would you protect the core IP if you license the stack to competitors?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop