Tesla applies for permit to launch ride-hailing services in California

Tesla applies for a California permit to start its own ride-hailing service.

: Tesla has applied for a permit in California to launch a ride-hailing service, aiming to rival Uber and Lyft. Unlike these companies, Tesla plans to own its fleet entirely but will initially utilize human-driven vehicles. Elon Musk has expressed confidence in introducing driverless services in California and Austin by year-end. Meanwhile, Uber and Lyft are also preparing for driverless services in 2025.

Tesla is setting the stage for significant competition against Uber and Lyft in California's ride-hailing market by applying for a 'transportation charter-party carrier permit' from the California Public Utilities Commission. If approved, this permit will allow Tesla to operate a fleet of electric cars to carry paying passengers throughout California, distinguishing itself by owning the entire fleet. Initially, Tesla plans to employ human drivers until its autonomous systems are ready.

Elon Musk recently suggested a timeline for launching driverless services in Austin by June and California by the end of 2025. He assured investors that Tesla's full self-driving software will surpass average human driving safety by the end of the year. However, current regulations mean Tesla's permit will not yet enable a fully unsupervised robotaxi service.

Simultaneously, Uber and Lyft are both exploring the launch of driverless services within the United States. Uber plans to utilize Waymo’s technology initially in locations like Austin and Atlanta, whereas Lyft intends to introduce May Mobility's driverless taxis in Atlanta. Both companies are investing in infrastructure and training to support these technological advancements.