The world of transportation is radically changing. It is an industry with immense technological challenges, most of which are AI related. In the current paste and major active industry players, it will become unrecognisable in following years. In this talk I aim to cover the different fields that it includes, data science related problems that it poses, and current state of the art solutions. The focus of this talk will be smart cities, which multiple teams @Google work on, including mine and myself. I will present my own work, including hotspot analysis, trajectory tracking (using a novel clustering method) using GPS and beacon data (patent pending), vehicle identification (classification and clustering), ETA and routing optimisation and personalisation (regression and ranking), drivers and riders matching (ranking and classification) and city planning. I will also cover but not focus other smart city topics research and solutions by my counterparts on other Google teams and in Uber like autonomous vehicles (not a focus here, it is already too popular and crowded and appears in too many talks), fleet coordination (in a multi agent system), load distribution (reinforcement based), and vehicle syncing. I will describe problems and solutions including the algorithm / model that is most currently used in the industry to solve such problems. On specific example, which I have personally researched I will go into more detail, including research phases, algorithm inner working and experiment results (usually A/B testing) on real user data. This talk will give the audience an understanding of the tremendous challenges faced when trying to improve the state of transportation, and how we solve and plan on solving them to make the world a better place. It will also give participants a rare glimpse to some of Google's and Waze's ideas, algorithm, research methodologies and future plans for global transportation. From personal experience of giving talks on transportation / Waze algorithms (never this one before) I have learnt that this is an "emotional" subject for many people, therefore very exciting to audience and full of questions. Note that this talk is very different from the one presented last year which was covering multiple fields Waze operates on (e.g. Ads, usage, conversion, behavioural analytics, etc.). This talk would focus only transportation, current state and future which focus on how data science is crucial and the leading field in solving many of these problems.