Tesla gets California green light for ride-hailing, but drivers required
Tesla just secured a commercial ride-hailing permit in California, clearing the path to compete head-on with Uber and Lyft. The catch is that human drivers are still mandatory—the permit doesn't cover autonomous vehicles. Tesla plans to have employees drive other staff first before rolling the app-based service out to the public.
Tesla is officially gearing up to enter California's ride-hailing market, but you shouldn't expect a driverless robotaxi just yet.
According to Bloomberg, the California Public Utilities Commission has approved Tesla's application for a transportation charter-party carrier permit, paving the way for the automaker to take on Uber and Lyft.
Humans behind the wheel, for now
Here is the catch: the permit does not cover autonomous vehicles.
Tesla employees will actually drive the cars. The service will initially shuttle fellow Tesla employees around before eventually opening up to the public. Musk previously told investors that the company was already piloting an app-based transit network for Bay Area employees using safety drivers.
Musk has claimed autonomous rides will launch in Austin by June and in California by year-end, but regulators are clearly taking a cautious approach. Meanwhile, rivals are pulling ahead. Waymo already operates commercial driverless services in San Francisco, Los Angeles, and Phoenix, and just launched robotaxi rides with Uber in Austin earlier this month.
Why it matters
We think launching a human-driven fleet is a pragmatic step for Tesla. Instead of waiting around for full autonomous approvals, getting the dispatch software, app experience, and fleet logistics running in the real world makes a lot of sense. For Uber and Lyft, it signals that Tesla is moving from being their drivers' vehicle of choice to a potential full-blown platform competitor.
Sources (1)
- engadget.com(opens in a new tab)Originalengadget.com