Google Spinoff Waymo Begins Limited Rollout Of Self-Driving Taxi Rides

Alphabet Inc’s GOOG GOOGL self-driving subsidiary Waymo has opened up its driver-supported robotaxis in San Francisco to select riders, an important step in a key market for the startup.

What Happened: Waymo said on Tuesday San Francisco residents can sign up to participate in a research-focused test program by downloading the Waymo One app. Participants can ride for free. 

“We’ve been driving in the city for over twelve years, have accumulated more autonomous driving miles in California than anyone in the industry, and began ramping up our testing by offering autonomous rides to our employees in San Francisco earlier this year,” the self-driving startup said.

Waymo said it kicked off the program last week with a select few and is now expanding the program to all interested San Francisco residents.

“We’ll begin with an initial group and welcome more riders in the weeks to come.”

Why It Matters: San Francisco is a key testing ground for autonomy and also home to Uber Technologies Inc UBER, and Lyft Inc LYFT. The development indicates Waymo, after years of limited expansion and delays, is finally scaling up the business.

The Mountain View, California-based startup launched a fully driverless commercial taxi service in October last year but has since not further expanded its autonomous services despite high expectations. It had reportedly applied for commercial permits in San Francisco earlier this year along with General Motors Co GM-backed Cruise. 

Waymo has long engaged in a war of words with Tesla Inc. TSLA, with the Alphabet unit's former CEO John Krafcik once saying that Waymo didn't even consider the Elon Musk-led company as a competitor in the self-driving space.

Price Action: Alphabet Inc Class A shares closed 0.87% higher at $2,825.23 on Tuesday.

Photo: Courtesy of Waymo