Tech

Google apparently collects service fees from other Alphabet units

Waymo, X and Loon may be "lunar" companies trying to change the world, but that doesn't give them the right to eat for free in Google cafeterias.

A new report from The Information's Nick Bastone and Jessica Lessin provides revealing insight into the relationship between Google and its sister companies Alphabet parent company, five years after Google founder Larry Page redesigned Google to create the Alphabet structure.

The various "Other Bets" companies, which include the Waymo autonomous car companies and Internet Loon radiant balloons, must pay "shared service fees" to use Google resources like the famous campus cafeterias and shuttles that transport the employees. work and go home, the report said.

The system has apparently caused tensions within Alphabet. Andy Conrad, CEO of Verily, a health technology company Alphabet, is said to have postponed paying Google's fees because Verily had her own cafeteria. And when Google started charging Verily for using its internal job candidate tracking platform, known as GHire, Verily switched to a similar product from another company, Greenhouse, in 2017.

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Verily and Google did not immediately respond to Business Insider's request for comment. A spokesperson for Verily told The Information that she had "never heard of" Conrad's resistance to the shared services tax and that she had opted for external providers when it "made sense" to the size and scale of the business.

The report illustrates the continued influence of the Google brand on other Alphabet units, despite its initial mandate to help companies stand out from Google's bureaucracy and way of life.

Alphabet units are still required to send monthly reports to Alphabet executives who have retained their positions at Google, the article said. And Ruth Porat, CFO of Alphabet and Google, has been appointed to hold these units accountable for their revenues.

There has been speculation on whether the company will stick to the Alphabet structure, now that Google founders, Larry Page and Sergey Brin, have left their daily roles in the ; company and installed Sundar Pichai as CEO.

So far, Google has engulfed three of Alphabet's other affiliates: Chronicle, Jigsaw and Nest. One of its other subsidiaries, Makani, was closed due to a "risky" marketing route.

You can read the full story of the information here.

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