Driverless Uber rides now challenging Elon Musk’s Tesla in its backyard

It doesn’t cost extra to book a Waymo in Uber’s app, and of course, no tip is required, though passengers can rate their experience.

(CNN) — Need an Uber? How about one without a driver?

Beginning Tuesday, rideshare hailers on Uber in Austin, Texas, can call a driverless Waymo, from Google’s parent company, Alphabet, for the first time. Travelers will be able to book rides across 37 square miles in Austin, the backyard of competitor Tesla, and in the Lone Star State that has long been a testing ground for driverless vehicles.

“We’re true believers in the technology, and so personally, I believe autonomous vehicles coming to market is a good thing for the world… we’re happy and genuinely excited to see autonomy coming to market and starting to scale,” said Andrew Macdonald, Uber’s senior vice president of mobility and business operations, in an interview with CNN. “When you have a supportive city, when you have a supportive local government, it encourages competition, it encourages innovation, and that ends up being a good thing for consumers.”

It appears there’s no bad blood between the two companies. Uber and Waymo, who were once embroiled in a lawsuit over self-driving technology, are now partners.

“Our partnership with Uber in Austin is an exciting step toward further scaling our safe, convenient, and sustainable autonomous technology,” said Nicole Gavel, Waymo’s head of business development and strategic partnerships, in a statement.

Riders in Austin who request an UberX, Uber Green, Uber Comfort or Uber Comfort Electric could be matched with a Waymo fully autonomous all-electric Jaguar I-PACE vehicle, at no additional cost, for up to four people.

Uber users can also boost their chances of getting a Waymo by adjusting their rider preferences. But if you don’t want to go driverless, the request will ask beforehand if you’d rather a different car, Macdonald said.

Uber has made attempts at entering the driverless market before, but not to this scale. In 2023, the company piloted a similar driverless launch in Phoenix, Arizona.

The launch between Austin and soon-to-come later this year Atlanta will scale to hundreds of vehicles in both cities over the next few years. Employees at Uber are already taking autonomous trips in Atlanta.

“It is something new,” Macdonald said. “It takes supportive local government as well as a willing consumer to bring it to market. We’ve got that in both of these markets.”

Uber also previously owned and operated its own autonomous vehicle fleet before the pandemic but later sold that fleet to another autonomous vehicle company, Aurora.

The news comes as Tesla, headquartered in Austin, has begun the process of seeking approval to offer ride-hailing services in California. The city has long been a testing ground for new technology, attracting startups and new firms, and home to a Tesla pant making Model Y and Cybertrucks.

Now, Uber and Waymo are coming in.

It doesn’t cost extra to book a Waymo in Uber’s app, and of course, no tip is required, though passengers can rate their experience.

If a safety issue occurs, drivers have access to 24/7 human support on the Uber app. As a passenger is following along in the app, Macdonald explained, at the push of a button, they can request help. The vehicle can also sense if there’s been an accident or any sort of incident.

Safety was a paramount concern during General Motors’ Cruise robotaxi operation, which GM ultimately pulled the plug on in December. The robotaxis had a string of incidents, including one in October 2023 in which one of its self-driving taxis in San Francisco hit a pedestrian and dragged the woman along the road for 20 feet.

Cruise said it would refocus on driver-assistance features rather than fully autonomous vehicles.

It doesn’t stop here. Uber has plans to continue and cast its net wider to other cities, Macdonald said. For now, it’s setting its focus on Austin and Atlanta and what can change for the average consumer.

“We expect this is going to grow the market overall” Macdonald said. “This is going to really expand the opportunities to both for both human driven vehicles in Austin, as well as autonomous vehicles. The market will grow. The opportunities for overall expansion of rideshare and people doing away with individual car ownership are really compelling here.”

The-CNN-Wire™ & © 2025 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

Report a Typo