Following the announcement made on Tuesday, Alphabet's Waymo has announced that it will be starting driverless passenger services for its employees in Austin, Texas, on Wednesday. This move marks a substantial step towards developing Waymo's autonomous ride-hailing program, known as 'Waymo One.'

The driverless rides for staff will cover a 43-square-mile area of Austin, including large neighbourhoods and downtown Austin. Eventually, the company aims to offer these services to the general public in the city, making it the fourth location Waymo's robotaxis would officially operate, following Los Angeles, San Francisco, and Phoenix. Waymo has not confirmed a timeline for when it will happen.

Why does it matter?

Waymo's history with Austin began in October 2015, when it gave a blind man a ride in its prototype car, signalling a long-term interest in the city as a potential hub for AV testing and operations. Texas' regulatory climate is more lenient than California's, and it should play an important part in Waymo's expansion plans in the state.

This announcement comes shortly after Waymo received permission to begin charging for rides in expanded regions, including Los Angeles and the San Francisco Bay Area. Waymo's plan to debut driverless services in Austin is part of a larger strategy to gradually extend its autonomous ride-hailing programme in the face of threats in the AV market.

For example, GM's Cruise is under investigation by the US government following a pedestrian collision, while Ford-backed Argo AI has suspended operations. Despite these industry obstacles and its own recent mishaps, including a collision with a cyclist in San Francisco, Waymo continues to go forward with its development plans.

Waymo One accounts for a large percentage of the company's revenue, particularly since it halted its autonomous trucking programme. The service's expansion into Austin reflects Waymo's commitment to advancing AV technology and offering innovative transportation solutions to more people.