Self-driving car companies Cruise and Waymo can expand in San Francisco.
The California Public Utilities Commission, which regulates passenger transportation, voted on Thursday to allow Cruise, majority owned by General Motors and Waymo, part of Google parent Alphabet, to deploy more vehicles in the city and to start charging for rides at all times.
The result, after a vote that had been delayed twice, signifies a big win for the self-driving car companies in their quest to expand statewide and to other cities across the U.S.
San Francisco has played host to thousands of self-driving car test miles, and some residents are regular users. Now the companies want to offer ride-hailing businesses that can compete with Lyft and Uber. Residents have expressed concerns about their deployment. Some first responders say they get in the way, and pedestrians have filled social media with reports of the cars’ antics.
“We do expect the AV companies to engage with first responders, with law enforcement, with city officials, and we do expect actions to address concerns. In the meantime, the resolutions before us do meet our requirements,” said Alice Reynolds, president of the commission.
The commission voted 3 to 1 to approve the companies’ proposals. Commissioner Genevieve Shiroma rejected them after saying a vote was premature. She pointed out that Cruise and Waymo hadn’t provided the number of vehicles they planned to deploy if the resolutions were approved.
Waymo said Thursday after the vote it will begin charging fares for rider-only trips in the city in the coming weeks and will be gradually inviting more people on the wait list for the app to ride. Cruise didn’t immediately respond to a request for comment.
Before the vote, dozens of people spent several hours making public comments for and against the companies’ proposals. Some urged the commission to reject them, citing concerns over the readiness of the technology, disability accessibility and the threat to human jobs. Others encouraged the commission to embrace technology that could eliminate human error and improve safety and disability accessibility. Some in favor of the proposals identified themselves as testers and partners associated with Cruise and Waymo.
Before the vote, Commissioner Darcie Houck also asked commission staff to report back on safety incidents and reports within three months if the companies’ proposals were accepted.
Cruise currently offers paid rides at night in San Francisco, while people have been riding in Waymo cars free of charge as the company sought the state’s permission to offer paid rides. Both apps have waiting lists.
In May, San Francisco city officials sent a letter to the state expressing concerns about the proposed expansion in the city. City officials said the number of reported incidents involving Cruise and Waymo vehicles has tripled in recent months.
Cruise and Waymo both previously told The Wall Street Journal that their cars haven’t caused any traffic fatalities. In their first million miles driven, Waymo said its self-driving vehicles in fully autonomous mode didn’t cause any collisions with human drivers.
As both companies plan their expansions, they face pressure from not only city officials but also their shareholders. So far, the businesses have produced minimal revenue. GM reported $102 million in sales and $3.3 billion in costs and expenses related to Cruise last year. Alphabet was asked by shareholders last November to cut their losses on long-term bets like Waymo.
While the companies have stated their plans to expand nationwide, they still face a long path ahead to persuade consumers to try the service. A 2022 poll by consumer-intelligence firm J.D. Power showed that most consumers are comfortable with driver-assist features, but only 12% indicated they are comfortable with full self-driving features.