We all know that online ads and marketing run the show at Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Google’s data and analytics programs provide plenty of cash as advertisers continue to spend more and more on online and mobile channels. Just check out GOOG’s latest earnings smash to see the results of this trend. And the trend has certainly been favorable for GOOG stock over the last three years or so. But Alphabet is much more than just advertising. GOOG is really a tech conglomerate comprised of many different businesses. And one of those businesses could start really making some serious waves in the near future. becoming a powerful, positive catalyst for GOOG stock.

We’re talking about Alphabet’s self-driving car unit, Waymo.

Thanks to a new partnership with one of the world’s largest retailers, Waymo could generate plenty of incremental revenue down the line as we continue to change the way we shop for goods. Of course, such a development would be extremely positive for GOOG stock.

Alphabet’s Big, Calculated Bet on Driverless Cars

While Tesla (NASDAQ:TSLA) and Uber get much of the credit and press when it comes to driverless vehicles, Google is actually leading the way. Tucked under Alphabet’s umbrella and fueled by plenty of advertising cash, Waymo has quickly become the leader in driverless technology. The division has already logged more than 8 million miles of real-world, autonomous vehicle testing, as well as an additional 5 billion simulated miles. That’s light years ahead of the competition. Moreover, unlike TSLA — whose crashes have generated plenty of negative press — Waymo has been pretty much free of crashes.

As a result of this head start in driverless technology, GOOG has already locked up some very lucrative partnerships. These deals will increase the size of Waymo’s fleet and enable retail consumers to utilize driverless vehicles very soon. Waymo has already signed a joint deal with Fiat Chrysler Automobiles (NYSE:FCAU) to add more than 62,000 Chrysler Pacific Hybrid minivans to its fleet. Under that deal, Alphabet is also working towards adding its Waymo technology to FCAU cars that will be used by retail consumers. Waymo also recently signed a similar deal with Jaguar Land Rover, enabling Alphabet to add a touch of luxury to its fleet.

Those two deals are paving the way for what may be Waymo’s biggest transaction yet: a partnership with Walmart (NYSE:WMT).

Alphabet And Walmart: A Match Made In Heaven

Quietly, at the end of July, Alphabet signed a new deal with Walmart. Under the agreement, consumers will order groceries online, and a Waymo vehicle will pick them up, take them to the store to receive their groceries, and then drive them home. Ultimately, the companies want Walmart employees to load a Waymo vehicle, which will then deliver the products to consumers’ homes.

This partnership is huge for two big reasons. First of all, improving the public’s perception of autonomous vehicles is vital to them succeeding. Thanks to several high-profile crashes — cough, Telsa — the public is beginning to distrust driverless vehicles. According to a recent AAA survey, more than 73% of Americans are fearful of and don’t trust autonomous vehicle technology. That figure is up, compared with last year’s survey. By getting people into Waymo cars, Alphabet can enhance consumers’ view of their safety and show people how easy it is to use the vehicles for daily errands.

Secondly, last-mile delivery has been the biggest problem plaguing online grocery shopping. Walmart and other grocery stores have struggled with this issue. WMT recently ended deals with Uber and Lyft, as the public didn’t trust the idea of random drivers handling their orders, while in-house delivery options have also proven to be unsuccessful.

According to many analysts, with Waymo,  consumers will benefit from the convenience of online grocery shopping , but they won’t feel “creeped out” about some random person touching their apples in transit. Of course, the process will be even more convenient for consumers if they ultimately do not have to travel to Walmart. The deal should eventually solve the main problems that have plagued online grocery services.

A Great Deal for GOOG Stock

The beauty of the deal is its potential size. Walmart has a massive store footprint in the U.S. and if the test proves successful, the partnership could generate plenty of revenue for Google over the long haul. Even if the program is only implemented in a few select regions, it could still significantly increase Alphabet’s bottom line, boosting GOOG stock in the process.

And if the Walmart partnership is successful, it could lead to other deals. Alphabet has already announced that it’s working on a similar partnership with shopping center developer DDR (NYSE:DDR). Under the deal being discussed, a shuttle/delivery service  would be developed for retailers in DDR’s power centers and strip malls. Given its head start and clear leadership position, Alphabet will most definitely get the nod. There’s no reason to believe that GOOG won’t be able to make similar deals with other retailers.

For investors, these budding deals underscore how GOOG stock is not just a one trick pony of search and how its cash can be used to support new growth engines. In the end, Alphabet’s new technology is poised to enable it to keep growing, and Waymo could be FANG’s next big hit. Investors who hold GOOG stock over the long-term will continue to be rewarded.

As of this writing Aaron Levitt did not hold a position in any of the aforementioned securities.