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 (ADOT) told TechCrunch the automaker applied for a Transportation Network Company (TNC) 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.
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 in 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.
