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Forward-looking: In a move that could usher in major competition for ride-hailing services Uber and Lyft, Tesla is reportedly planning to launch its own ride-hailing service in California. However, unlike the established companies, Tesla apparently intends to own and operate its entire fleet.
According to Bloomberg, the EV giant applied for a “transportation charter-party carrier permit” from the California Public Utilities Commission (CPUC) last year. If granted, the permit would allow the company to operate a fleet of electric cars with paying passengers across the Golden State.
While Tesla has grand plans to launch autonomous cab services across the US at some stage, it is set to use human-driven vehicles for its upcoming venture, at least initially. Documents submitted by Tesla to California officials reportedly mention drivers’ license information and drug-testing coordination, suggesting that the company will have to wait a little longer before its unsupervised FSD software is ready for robotaxi duties.
In a statement to Reuters, the CPUC confirmed that Tesla applied for the permit last November. A spokesperson from the agency explained that the transportation charter-party carrier permit is a “pre-requisite” for permission to operate an autonomous ride-hailing service, but added that the current application would not allow the company to offer a commercial robotaxi service “in any capacity.”
Elon Musk recently announced plans for Tesla to launch driverless ride-hailing in Austin in June and in California by the end of the year, though he did not offer any details.
Musk also told investors in January that he was confident the unsupervised full self-driving software will be released in California by the end of the year, claiming that the new mode will offer safety levels that are “significantly above” the average human driver.
Tesla isn’t the only company planning to start a robotaxi service in the US this year. According to The Wall Street Journal, both Uber and Lyft are looking to add driverless cars to their apps in 2025. While the former wants to start off its self-driving adventure with autonomous cars from Waymo in Austin and Atlanta, the latter is reportedly planning to offer May Mobility’s driverless taxis in Atlanta.
Uber and Lyft are said to be scouring locations to store the cars. They are ensuring that there are enough high-speed charging stations and equipping the cars with high-speed internet as part of their preparations for the commercial launches. Both companies are also training workers to maintain the cameras, lidar, and other gadgets essential to self-driving vehicles.
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