Waymo has been granted approval by the California Public Utilities Commission (CPUC) on Friday afternoon to launch its commercial robotaxi service in Los Angeles, the San Francisco Peninsula, and on San Francisco freeways. This green light marks the removal of the final hurdle for the Alphabet company to start charging for rides in these expanded areas. This development is significant as it paves the way for Waymo to operate in one of the largest cities in the United States and establish a route to San Francisco International Airport, situated south of the city.
Since receiving approval from the commission in August, Waymo has been running a commercial service 24/7 across San Francisco. Additionally, the company has been permitted to offer complimentary driverless rides in certain parts of Los Angeles. However, until today’s approval, Waymo was unable to charge for rides in Los Angeles.
The CPUC’s Consumer Protection and Enforcement Division had previously suspended Waymo’s application to expand its robotaxi service in Los Angeles and San Mateo counties for up to 120 days to conduct further review. This decision was made in response to 81 responses and five protests received by the CPUC, necessitating additional time for thorough examination and incorporation into the staff decision. The protests were submitted by various entities including the city of South San Francisco, the county of San Mateo, the Los Angeles Department of Transportation, the San Francisco County Transportation Authority, and the San Francisco Taxi Workers Alliance.
Waymo, which initiated a community tour of Los Angeles in October, was concluding its final neighborhood visit while awaiting the final approval.
The CPUC’s decision follows closely on the heels of Waymo co-CEO Tekedra Mawakana’s discussion about the company’s future and the autonomous vehicle industry at StrictlyVC LA. Mawakana highlighted the positive reception Waymo robotaxis received in the city, with over 15,000 people utilizing the service. Trip data revealed that customers were using the service for daily errands, indicating strong potential for commercial success in Los Angeles.
“It’s fascinating to see that about 2,000 of those trips are for very basic errands, which essentially means using Waymo for your everyday life,” Mawakana remarked. “Similarly, about 2,000 trips are to restaurants and bars, and another 300 trips are for school and college, including K through 12. This signals that people aren’t just giving us a warm welcome; they’re truly integrating Waymo into their lives.”
Mawakana also mentioned that 50,000 people have joined the waitlist to use the service in Los Angeles.
Regarding the possibility of charging for rides in Los Angeles, Mawakana stated on Thursday evening that Waymo wouldn’t immediately implement charges if approved (which indeed occurred the following day).
“We will, similar to what we did in San Francisco, expand our service before introducing charges,” she explained. “We’ll provide the experience for a couple of months or several months without payment. Then, we’ll reach a ‘moment of truth,’ as we did in San Francisco, when we start charging. This will help us understand how many people have truly integrated Waymo into their lives and determine the price point they’re willing to pay.”