Waymo is a division of Alphabet (Google’s parent company) thatis developing the technology for driverless
cars. Waymo CEO John Krafcik is under pressure to offer acommercial driverless taxi service in the Phoenix
area as soon as Fall 2018. Analysis at web-site arstechnica.comsuggests that Waymo has by far the most
advanced technology available for this type of service.
Is it likely that being first into this market will give them alarge advantage? Is Waymo likely to earn
unusually high accounting profit for a long period of time?Discuss using concepts from this class.
