What do uber and lyft get out of it, though? If Waymo succeeds they're out of business, right? Or is the idea that Waymo becomes a hardware provider and uber / lyft become operators?

Uber and Lyft calculate that their cooperation doesn't affect Waymo's trajectory too much, and they immediately benefit from "more drivers."

> Or is the idea that Waymo becomes a hardware provider and uber / lyft become operators?

This is one natural way that things may shake out and a natural path to scale. But Waymo needs to have a fallback plan of A) other parties to work with, or B) just doing it themselves to get a good deal with Uber/Lyft in the long term.

Uber/Lyft would like Waymo to not the the sole provider of autonomous technology and to work with them; they can expect to receive rides at just a bit above marginal cost in that case.

Uber and Lyft's business model is that they don't own cars. Waymo owns cars, so is at a disadvantage to them. Cars are still expensive and need maintenance even if they don't have drivers.

If Uber/Lyft develop their own driverless cars they can terminate the relationship with Waymo and just use their own. If they don't develop their own driverless cars, they can continue to partner with Waymo.