Don't Waymo-equipped vehicles cost upward of $400K for car + sensor add-ons? How would anyone hope to recoup that cost with a bunch of $5 rides?
Um... Yes it's absolutely like that. They're using phoenix because it very little rain, so they can get cars that work ignoring bad weather
Afterwards they can scale out to other good weather cities and focus harder on expanding the weather they can drive in
I think this is pretty reasonable considering that for $5/ride I would expect there to be quite a lot of demand, and there's opportunities for things like food delivery as well.