Tesla Secures Ride-Hailing Permit in Arizona For Robotaxi Service, But There's a Catch

Tesla has secured a new ride-hailing permit from the state of Arizona, allowing its self-driving electric vehicles to operate in the area and allowing the public to experience the latest service from the clean energy company.

This officially makes the Tesla Robotaxi service available in three states since it started, following its receipt of ride-hailing permits in Austin, Texas, and California.

Tesla Secures Ride-Hailing Permit in Arizona

Tesla has recently secured its ride-hailing permit in Arizona, which it needs to launch its service in the state and begin its operations that would allow the public to book their rides via the app, per Reuters' report.

The publication noted that Tesla only applied for the ride-hailing permit last November 13, and the Elon Musk-owned company received it four days later on November 17.

This follows the recent application for certification from the state, which Tesla applied for in September, with this focusing on the testing of its Robotaxi service in the area, including mapping out the streets, roads, and traffic.

In its previous setup, Tesla was required by the state to have a safety monitor on board to intervene whenever needed or required.

The new permit grants Tesla the capabilities to allow the public to book rides, use the service, and receive payment from the trip, which greatly expands its Robotaxi's services and plans.

According to a report by Engadget, Tesla CEO Elon Musk previously said in the quarterly earnings call that they are targeting to expand the Robotaxi service to operate in around eight to 10 metro areas by the year's end.

There's a Catch

According to reports, there is a catch on the recent ride-hailing permit granted by Arizona to Tesla's Robotaxi service, particularly as it would still require them to have a safety monitor on board.

This means that users who book rides via the Tesla app would be accompanied by a Tesla Robotaxi staff member to monitor the trip, and it is not exactly a fully driverless setup.

The Tesla Robotaxi service would still be permitted to use the Full Self-Driving (FSD) technology when going from one place to another and when picking up and dropping off passengers, but a safety monitor would be with them at all times.

This setup is similar to the ones Tesla Robotaxi has in Austin and California, which still require the company to have safety monitors on board.

In this setup, users would likely have a similar experience to riding an Uber or Lyft in a Tesla, with a dedicated driver in the seat. However, instead of the driver navigating on the roads to take them to their destination, it would be the Robotaxi's FSD technology doing the work.