Arizona regulators granted Tesla a ride-hailing permit, allowing the automaker to start its robotaxi service in the state. According to reports, the car manufacturer submitted a Transportation Network Company (TNC) permit application on November 13.

According to ADOT, Tesla satisfied the criteria to function as a TNC and is authorized starting November 17.

The permit represents the last regulatory requirement to initiate a robotaxi service in Arizona, a state that has emerged as a center for testing and developing autonomous vehicle technology.

Waymo, the self-driving firm owned by Alphabet and the leading robotaxi service in the U.S., has been providing a service in the Phoenix region since 2018. Currently, Waymo robotaxis operate across a service zone of 315 square miles in the larger Phoenix metropolitan region.

According to Arizona state regulations, businesses must apply and subsequently adhere to a self-certification procedure to evaluate autonomous vehicles, whether they have a driver or not. However, this does not permit the company to run a robotaxi service that collects fees for rides.

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Any business intending to run a ride-hailing service, whether driven by humans or robots, is required to obtain a Transportation Network Company permit.

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In June, Tesla reached out to the Arizona Department of Transportation to initiate the certification process for autonomous vehicle ride-sharing services. A spokesperson informed TechCrunch then that the company was interested in conducting operations in the Phoenix Metro region.

Tesla subsequently sought permission for both driver-assisted and driverless autonomous vehicle testing and operation. In September, a spokesperson from ADOT confirmed that Tesla completed Arizona’s self-certification process to test its autonomous vehicles.

 

Arizona is one of the states that Tesla CEO Elon Musk has aimed for the company’s robotaxi service.

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In June, Tesla introduced a restricted robotaxi service in South Austin. Although the service has expanded, the company continues to have a human safety operator in the passenger seat.

Tesla has introduced a pseudo-ride-hailing service in California, but it does not have the necessary permits to run a commercial robotaxi service in the state. Rather, the organization, holding a license to run a charter service, employs staff driving Tesla Model Y cars fitted with its sophisticated driving aid system called Full Self-Driving Supervised to collect passengers.