Strategy question

Why is Google investing in self-driving cars?

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What this question tests

Tests basic strategic reasoning, connecting a bold bet to a company's core business and long-term positioning.

How to approach it

  1. State the core rationale: self-driving protects and extends Google's ad and data business by capturing future screen time and location data in vehicles.
  2. Name new revenue lines: robotaxi rides, licensing the self-driving stack to automakers, and mapping or logistics data.
  3. Frame the strategic defense: prevents disruption risk if transportation shifts toward autonomous fleets controlled by others, like Uber or automakers.
  4. Note the long-term optionality: a 10-plus year bet consistent with Alphabet's Other Bets model of funding moonshots with patient capital.

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