Key Takeaways

Google said it is bringing its Waymo self-driving taxis to Miami, news that sent shares of Uber Technologies ( UBER ) and Lyft ( LYFT ) sharply lower as investors weighed the risk to their services.

In a Thursday blog post, Waymo announced that it would expand its driverless ride-hailing service to Miami. Waymo has previously tested vehicles in Miami, a city that provided “challenging rainy conditions” for its driverless vehicles , the company said.

A subsidiary of Google's parent company, Alphabet  ( GOOGL ), Waymo has brought its self-driving ride-hailing services to Phoenix, Los Angeles, San Francisco and Austin to date. The company said it will begin training its all-electric Jaguar I-PACE on Miami streets in early 2025 and plans to offer the service to riders in 2026.

The company also announced its partnership with African fintech provider Moove to oversee expansion into Miami. Moove will also take over Waymo's fleet management operations in Phoenix.

Shares of Uber and Lyft both shed about 10% on Thursday as investors weighed the threat that Waymo’s expansion posed to the ride-sharing businesses. Uber is partnering with Waymo in Austin and Atlanta to offer driverless car rides in those cities.

The news comes as investors anticipate the expansion of self-driving technology , with Tesla ( TSLA ) also working to develop driverless, ride-hailing technology .

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