Waymo, the self-driving vehicle startup of Alphabet Inc., has received the go-ahead from the California Public Utilities Commission (CPUC) to finally transport passengers for free in its robotaxis.
The approval is a huge win for Waymo as it strives to begin a robotaxi commercial service using its own self-driving or autonomous cars in select American cities.
Waymo's self-driving vehicle or robotaxi fleet now consists solely of Chrysler Pacifica hybrid minivans but will eventually include the Jaguar I-PACE electric vehicle (EV). Under its contract with CPUC, Waymo can't charge for rides. Its robotaxis must also have human "safety drivers" behind the wheel just in case.
The permit granted Waymo on Tuesday allows the robotaxi firm to participate in California's Autonomous Vehicle Passenger Service (AVPS) pilot program.
CPUC also gave Waymo an exemption that will allow the firm to use a third-party company to outsource safety operators, which is an exception to CPUC rules. In requesting the exemption, Waymo said that while its team of test drivers will include some full-time Waymo employees, operating meaningful pilot requires a large group of drivers more efficiently engaged through Waymo's experienced and specialized third-party staffing providers.
Waymo said the AVPS pilot program allows it "to participate in their pilot program, giving Waymo employees the ability to hail our vehicles and bring guests on rides within our South Bay territory."
"This is the next step in our path to eventually expand and offer more Californians opportunities to access our self-driving technology, just as we have gradually done with Waymo One in Metro Phoenix."
The California contract comes nearly a week after Waymo made its robotaxis available to Lyft riders in Phoenix, Arizona.
Apart from Waymo, Uber Technologies Inc. is developing and testing its own self-driving cars. Tesla Inc. the U.S. leader in EVs, said its Tesla EVs will be able to serve as robotaxis by 2020.
Arizona, however, has been the center of Waymo's robotaxi activities. Waymo opened its first ride-hailing service in Arizona, which has fewer regulatory requirements. It then opened a technical center in Chandler.
In December, Waymo launched Waymo One, a commercial self-driving car service. Waymo One, which charges passengers, has Waymo-trained test drivers behind the wheel.
