They have a big upfront cost to add a new city, but once they add it, their marginal revenue per car will be higher there (partly because they can be sure to keep those cars busy and partly because they can charge a higher premium).
They have to prepare the infrastructure anyway in all the cities to get to the scale they want to get to, but each new car built is going to be sent to the least scaled city so far.
Does that make sense from a consumer brand perspective though? If everytime I check Waymo there's no capacity or it's super expensive, pretty soon I won't even bother checking it.
They have to prepare the infrastructure anyway in all the cities to get to the scale they want to get to, but each new car built is going to be sent to the least scaled city so far.