Is it better for Waymo to focus on reducing costs or enhancing safety features for its self-driving technology?

Introduction

The trade-off between reducing costs and enhancing safety features for Waymo's self-driving technology is a critical decision that will shape the company's future. This scenario involves balancing financial considerations with the paramount importance of user safety in autonomous vehicles. I'll analyze this trade-off by examining the product context, identifying key metrics, designing experiments, and providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Waymo is at a stage where it's considering scaling its technology. Is this correct, or are we still in early development?

Why it matters: Helps determine the urgency of cost reduction vs. safety enhancements Expected answer: Preparing for wider deployment Impact on approach: Would influence the balance between immediate cost savings and long-term safety investments

• Business Context: How does Waymo's current cost structure compare to traditional ride-hailing services?

Why it matters: Informs the necessity and potential impact of cost reductions Expected answer: Significantly higher due to technology costs Impact on approach: Would prioritize cost reduction if the gap is substantial

• User Impact: What's our current user sentiment regarding safety features?

Why it matters: Helps gauge the potential market reaction to safety enhancements or reductions Expected answer: High concern for safety, but also price sensitivity Impact on approach: Would influence the balance between visible safety features and behind-the-scenes cost optimizations

• Technical: Are there any upcoming breakthroughs in sensor technology that could significantly impact costs or safety?

Why it matters: Could affect the timing and nature of our investments Expected answer: Some promising developments, but nothing immediate Impact on approach: Would consider phased implementation to leverage future advancements

• Resource: What's our current R&D budget allocation between cost reduction and safety enhancement?

Why it matters: Helps understand current priorities and potential for reallocation Expected answer: Roughly equal split Impact on approach: Would inform how drastic of a shift we might consider