Tesla received a ride-hailing permit from Arizona regulators this week, allowing the company to kick off a robotaxi service in the state.
An Arizona Department of Transportation (ADOT) spokesperson informed TechCrunch that Tesla applied for a Transportation Network Company (TNC) permit on November 13. By meeting the necessary requirements, Tesla was officially permitted as of November 17.
This permit is the last hurdle for launching a robotaxi service in Arizona, which has emerged as a center for autonomous vehicle technology testing and development. Waymo, the self-driving company owned by Alphabet and the leading robotaxi provider in the U.S., has been operating in the Phoenix area since 2018. Currently, Waymo’s robotaxis cover a service area of 315 square miles within the greater Phoenix metro region.
According to Arizona state law, companies must apply for and undergo a self-certification process to test autonomous vehicles, whether or not they have a driver. However, this process does not permit the operation of a paid ride-hailing service. Any entity looking to run a ride-hailing service, whether driven by a human or a robot, must secure a Transportation Network Company permit.
In June, Tesla reached out to the Arizona Department of Transportation to explore autonomous vehicle ride-sharing services and initiate the certification process. The company indicated its interest in operating within the Phoenix Metro area, as mentioned by a spokesperson to TechCrunch.
Later, Tesla submitted applications for both autonomous vehicle testing with a driver and testing without one. An ADOT spokesperson confirmed that Tesla completed Arizona’s self-certification process in September to test its autonomous vehicles.
Arizona is one of several states that Tesla’s CEO, Elon Musk, is eyeing for the company’s robotaxi service.
In June, Tesla launched a limited robotaxi service in South Austin. While the service has expanded, a human safety operator is still required to be seated in the passenger seat.
Additionally, Tesla initiated a pseudo-ride-hailing service in California, despite lacking the necessary permits for a commercial robotaxi operation in the state. Instead, the company employs drivers to operate Tesla Model Y vehicles equipped with its advanced driving assistance system, known as Full Self-Driving Supervised, to transport riders.
