Why Alphabet, Inc. Won't Be Marketing Its Own Self-Driving Car

By Motley Fool StaffMarketsFool.com

Self-driving car technology is looking more and more like an inevitability with each passing month.

In this clip from the Industry Focus: Tech podcast, Motley Fool analyst Dylan Lewis and contributor Daniel Sparks explain what Alphabet(NASDAQ: GOOGL) (NASDAQ: GOOG) subsidiary Waymo has said so far in regards to monetizing autonomous cars (and autonomous car technology), and how realistic the company's plans are.

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A full transcript follows the video.

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This podcast was recorded on Dec. 16, 2016.

Dylan Lewis: One ofthe other things we got some color onregarding Google's self-driving car project,I guess I should be calling it Waymo now, isexactly how they plan to monetizeself-driving car technology. This is something that's been kind ofup in the air for a while. At times, they'vetalked about not wanting to be a car manufacturer,but it's hard to take them at face value there, because they're looking to obscure this as much as possible. Youwant to talk a little bit about what we got in terms of commentary there?

Daniel Sparks:Yeah,that was one of the big takeaways when they were coming out with this Waymo announcement. There was some speculation that Alphabet could be working on its own Google-branded car. Whilethey might not actually have thought of planning ofmanufacturing it,as they do with their hardware products, they often outsource themanufacturing and then slap that brand on,similar to the wayAppledoes withFoxconn, but, there was somespeculation that they could try to be working on some Google-branded car, andwe have seen their cars with no steering wheel, theirambitious vision ofa totally autonomous driving experience. There has been some speculation in the past that they would be planning to bring a larger fleet of those to the market. But the CEO of Waymo, John Krafcik -- I think that's how you pronounce it?

Lewis:I think it's pronounced another way, but I'm not sure.I've only seen it and writing, I have not heard it said.I understand how neither of us are totally sure.

Sparks:OK, that sounds better, we'll go with that. We'll just call him John today. John,he emphasized that they're not trying toturn into a car business, but rather wanting to focus on the technology behind the cars, and basically, Waymo's mission to make driving autonomous, to make it safer, and, as in their name, really focus on the mobility.I think this is a good move. This is something that Alphabet has succeeded at in the past by really focusing on software and gathering data -- because, essentially, that's the company's core mission, to organize data. So, by doing this, I'm actually more bullish on the segment by seeing that they're really going to focus on their core competencies with it. And maybe similar to the way Alphabet tries to add in Google-branded hardware later on withAndroid,maybe they'll do a similar things with cars by trying to bring in Google-branded cars later on after they've really developed and honed in on their expertise and the autonomous area of the technology.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Daniel Sparks owns shares of AAPL. Dylan Lewis owns shares of Alphabet (A shares) and AAPL. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and AAPL. The Motley Fool has the following options: long January 2018 $90 calls on AAPL and short January 2018 $95 calls on AAPL. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.