Rearranging the Alphabet: An Updated Look at Alphabet Inc. 5 months in

The tech world was abuzz in August when Google announced a restructuring that put them under a new parent company called Alphabet. With Google becoming far more than a search engine, working on projects like self-driving cars and robotics, the founders decided to create Alphabet as a “collection of companies” to separate those ventures from that of Google and allow them to develop as individual companies. The transition became official in October, and since, Alphabet has undergone various shifts and developments as the company works to find the right place for each of its projects. Here I outline some of the most recent developments:Self-Driving Cars:Bloomberg reported that next year Google plans to reorganize its self-driving cars unit into a freestanding company under Alphabet Inc. Self-driving cars are currently just a division under Google X (see below). For now, Google is not intending to mass-produce cars and trucks, but rather launch a ride-for-hire service, which could pose a challenge to companies like Uber and Lyft.Google X:Google X was launched in 2010 as a research and development division and is now a subsidiary of Alphabet. Google X works on a variety of “moonshots,” which Google defined in 2013 as projects that “live in the gray area between audacious technology and pure science fiction” and aim “for a 10x improvement over what currently exists.” One of these is Project Loon, which is working to bring Internet to every edge of the globe through the development of a network of balloons in the stratosphere that can provide connectivity. At the end of November, based on documents filed with the FCC, media outlets began to infer that Google is planning to test Project Loon in the United States.As of last week, the company’s robotics projects and Project Titan will become part of Google X, according to Recode. Google acquired Titan Aerospace, a manufacturer of high-altitude satellite drones, in 2014. Titan will join Project Wing, Alphabet’s other drone project that is working on a drone delivery system. As of November, Alphabet began looking for test pilots for both projects, and expects to start commercial drone delivery in 2017.Verily:Google Life Sciences, formerly a division of Google X and then subsidiary of Alphabet, was rebranded into Verily in early December. The word means “truly,” and CEO Andy Conrad told STAT News the name is aspirational, for “Only through the truth are we going to defeat Mother Nature.”“Verily is a new company that is focused on bringing together technology, science and medicine in the places where we think we can have the biggest impact on the detection, management, and prevention of disease.” said a Verily spokesperson in a statement.Verily’s projects include contact lenses that can measure glucose levels to help people with Diabetes, silverware that helps people with tremors eat more easily, and a nano particle platform that would help with early disease detection.On December 10th it was announced that Verily is also forming a spinoff company with Johnson & Johnson called “Verb Surgical.” Though there are few details about the company, the press release describes it as “a comprehensive surgical solutions platform that will incorporate leading-edge robotic capabilities and best-in-class medical device technology for operating room professionals.”These shifts and rebrands have caught the attention of investors who are awaiting the announcement of Alphabet’s first earnings report under the new structure. As Andrew Tonner wrote on the Motley Fool blog, “for Alphabet investors, the question remains whether Alphabet can convert high-potential projects like Verily into real, self-sustaining businesses.”