Tesla received a ride-hailing permit this week from Arizona regulators, opening the door for the automaker to begin operating a robotaxi service in the state.
A spokesperson with Arizona Department of Transportation told TechCrunch the automaker applied for a Transportation Network Company permit on November 13. Tesla met the requirements to operate as a TNC and is permitted as of November 17, according to ADOT.
The permit is the final regulatory step to launch a robotaxi service in Arizona, a state that has become a hub of autonomous vehicle technology testing and development. Waymo, the Alphabet-owned self-driving company and the dominant robotaxi provider in the U.S., has operated a service in the Phoenix area since 2018. Today, Waymo robotaxis cover a service area of 315 square miles in the greater Phoenix metro area.
Under Arizona state law, companies apply and then follow a self-certification process to test autonomous vehicles with or without a driver. But that doesn’t allow the company to operate a robotaxi service that charges for rides. Any company that wants to operate a ride-hailing service, human or robot driven, must apply for a Transportation Network Company permit.
In June, Tesla contacted the Arizona Department of Transportation regarding autonomous vehicle ride-sharing services to begin the certification process. The company expressed interest in operating within the Phoenix Metro area, a spokesperson told TechCrunch at the time.
Tesla later applied for both autonomous vehicle testing/operating with a driver and testing/operating without a driver. Tesla went through Arizona’s self-certification process in September to test autonomous vehicles, an ADOT spokesperson confirmed.
Arizona is among several states Tesla CEO Elon Musk has targeted for the company’s robotaxi service.
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In June, Tesla launched a limited robotaxi service in South Austin. While the service has grown, the company still has a human safety operator sitting in the passenger seat.
Tesla also launched a pseudo-ride-hailing service California, although it lacks the proper permits to operate a commercial robotaxi service in the state. Instead, the company, which has a permit to operate a charter service, uses employees driving Tesla Model Y vehicles equipped with its advanced driving assistance system, known as Full Self-Driving Supervised, to pick up riders.