[dageshi]

I'm pretty certain they won't undercut Uber or other taxi services any time soon because they don't want to provoke the political headache that comes with it. That type of politics could shutdown their licenses, I'm sure they want to avoid that at all costs so they're pricing above existing services.

What they may do is refuse to raise prices and eventually inflation will make them the cheapest.

[Rodeoclash]

They can charge more in Melbourne and I'll happily pay it to avoid drivers that cancel the trip after accepting or accept the trip and drive away from me until I cancel.

[RivieraKid]

Charging about as much as their competitors is probably the profit-maximizing strategy.

[standardUser]

They're already the cheapest if they match prices because there is no tip required. In the long run they'll inevitably be cheaper because of higher utilization of their vehicles and (vastly) lower labor costs.

[rwmj]

This is a misunderstanding of the economics of taxi firms. Taxi companies don't pay for purchase or depreciation of their cars (the drivers do), but Waymo does.

[standardUser]

There are no drivers with Waymo. Believe it or not, a living annual wage for a person (or close to it) is vastly more expensive than the annual maintenance and depreciation on even a very expensive vehicle.