UPDATED 13:52 EST / AUGUST 11 2023

POLICY

Waymo and Cruise cleared to offer paid autonomous taxi services in San Francisco

The California Public Utilities Commission has granted Waymo LLC and Cruise LLC authorization to offer paid autonomous taxi trips in San Francisco.

The authorization took the form of two resolutions that CPUC commissioners approved on Thursday. The resolutions specify that Waymo and Cruise may operate their autonomous taxis on a commercial basis without a safety driver onboard. Moreover, the companies have permission to do so at all hours of the day.

Waymo is Alphabet Inc.’s autonomous vehicle unit. Cruise is a competing player in the same market that operates as a subsidiary of General Motors Co. In addition to receiving backing from their respective parent companies, Waymo and Cruise have each raised billions of dollars from outside investors.

The two rivals have operated autonomous vehicles in San Francisco for some time. However, their operations were subject to certain restrictions.

Until now, Cruise was allowed to offer autonomous vehicle trips without a safety driver present at all hours of the day. However, the GM subsidiary could only charge for those trips between 10 p.m. and 6 a.m. and only in certain parts of San Francisco.

Regulators imposed similar limitations on Waymo’s operations. The main difference is that, unlike Cruise, there weren’t any time frames when the Alphabet unit was allowed to charge for autonomous vehicle trips. In the case of both companies, the restrictions didn’t apply when their autonomous vehicles had a safety driver onboard. 

The CPUC voted to lift those restrictions on Thursday after a more than six-hour hearing. According to The Verge, hundreds of people voiced their opinions about the matter during the hearing. Those opposed reportedly “appeared to have a slight edge over the supporters.”

San Francisco’s transit agency and several other departments have also expressed concerns. Previously, multiple city officials reportedly asked the CPUC to delay the vote. The officials are said to have cited a number of incidents in which autonomous cars blocked traffic and obstructed emergency vehicles.

After separately reviewing the autonomous taxi operations of Waymo and Cruise, the CPUC determined that the companies have met all the relevant regulatory requirements.

“We must base our decision on this data and evidence and on the proper scope of our authority,” said CPUC President Alice Busching Reynolds. “We do expect the AV companies to engage with first responders, with law enforcement, with city officials, and we do expect actions to address concerns.”

The CPUC authorization follows a multiyear effort by Waymo and Cruise to secure regulatory approval for their autonomous taxi services in San Francisco. The companies reached the first major milestone towards this goal in 2021. That year, the California Department of Motor Vehicles granted them permits to offer paid autonomous vehicle trips.

Looking ahead, both Waymo and Cruise intend to expand the availability of their self-driving taxi services. Cruise last month announced plans to launch its service in Nashville. Earlier this year, Waymo doubled the size of the area in Phoenix where its self-driving taxis are available. 

Photo: Waymo

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