Tesla's robotaxi rivals inch forward

Hi everyone, it’s Ed in San Francisco. Robotaxi companies had an active week, expanding coverage and services while the world waits for Tesl [View in browser]( [Bloomberg]( Hi everyone, it’s Ed in San Francisco. Robotaxi companies had an active week, expanding coverage and services while the world waits for Tesla’s promised self-driving taxi in August. But first... Three things you need to know today: • OpenAI named a former AWS exec to [lead its new Tokyo office]( • Cloud and data security startup Rubrik is [seeking a big IPO]( • Singapore’s Carro is raising $100 million [ahead of its own public debut]( Getting out of neutral Waymo, the autonomous driving child of Alphabet Inc., expanded its paid-fare service to Los Angeles this past Wednesday. It had already been offering free rides to Angelenos, but this was a major sign of confidence that the service is robust enough to charge for, adding a third metropolis to San Francisco and Phoenix. Alas, the launch in LA coincided with a video emerging of one of its vehicles in Chandler, Arizona, [driving straight into a construction site](. Waymo’s team responded by thanking the poster for flagging the issue. If you’ve had the feeling that robotaxis have stalled, it might be because images of all kinds of mishaps and self-driving confusion have been shared widely across social media. Local transport authorities, firefighters, law enforcement and worker groups have all expressed frustration. It’s rare to hear optimism on the subject, but gradual progress is happening. Cruise, the self-driving outfit majority-controlled by General Motors Co., is climbing back from a calamity of its own making. Having grounded its entire fleet after an accident last year, it’s resuming testing in Phoenix [with safety drivers behind the wheel](. That’s one step toward returning to its peak, when it had hundreds of autonomous cars on the road and was charging fares 24/7 in San Francisco. One of Cruise’s cars struck a pedestrian in San Francisco in October, and the company’s handling of the incident prompted regulators to allege it withheld key footage and details of the incident, which ultimately resulted in the suspension of its license in California. Amazon.com Inc.'s Zoox is also moving forward, now giving rides to the public in Foster City, California, in its autonomous, purpose-built shuttle. Without pedals or a steering wheel, and with four inward-facing seats, it’s more akin to [taking a tramway or a shuttle bus]( than a car. That was the impression of Bloomberg Technology producer Marguerite Gallorini when she jumped on for a test ride (with her seatbelt secured). Zoox is eyeing Las Vegas for further progress. The city, home to an endless array of conventions, functions, sports galas and confabs, seems ideally positioned to benefit. It’s got more people travelling in groups than most places. And unlike Waymo, Zoox has never given rides to the public in retrofitted consumer cars. It’s the bug-eyed shuttle or nothing. Cruise used to share a similar vision for a pedal-free, wheel-less robotaxi shuttle it was going to call Origin. But those plans are very much on the backburner while it focuses on talks with officials in 20 metropolitan areas where it previously operated cars to try and lay the foundation for an eventual robotaxi service, reports Bloomberg’s Julia Love. The companies would state these as big indicators of progress. But the data we have to track the direction of travel is, well, mixed. Beyond the three big players above, funding for autonomous vehicle technology continues to fall from its peak in 2021. Robotaxis have always been a capital-intensive, long-term task. Over in China, Baidu has been testing its service in about 10 cities and probably has the largest fleet in the country, with more than 600 vehicles as of 2023. Pony.ai has robotaxis running in designated zones in Beijing, Shanghai, Guangzhou and Shenzhen and has started charging riders in three of those cities. WeRide is another player that operates over 600 robotaxis and self-driving minibuses, which can be found in 26 cities worldwide including Beijing, Shenzhen and Abu Dhabi. [Elon Musk disclosed]( earlier this month that Tesla Inc. will unveil a “robotaxi” on Aug. 8. But what kind of robotaxi is he talking about? Musk has spent a lot of time over the last six years trying to convince consumers that the Model 3, and the generations of EVs since, have all the hardware and software required for self-driving. Those cars have pedals, steering wheels and a choice to either drive yourself or rely on some pretty sophisticated assistance. [Will this new Tesla robotaxi]( be more of the same? Or will it be truly autonomous, with no human-driving hardware on board, akin to Zoox and Cruise’s concept? To his credit, Musk outlined a major vision for Tesla robotaxis as far back as 2016, in the modestly titled [Master Plan, Part Deux](: “In cities where demand exceeds the supply of customer-owned cars, Tesla will operate its own fleet, ensuring you can always hail a ride from us no matter where you are.” However Musk approaches it, in August we’ll see Tesla get into more direct competition with GM's Cruise, Amazon’s Zoox and Alphabet’s Waymo — which continue to show how hard the entire robotaxi undertaking is. —[Ed Ludlow](mailto:eludlow2@bloomberg.net) The big story Apple’s slump in China shipments is showing up in its global results, according to independent research. The iPhone maker saw a 10% decline in shipments in the first three months of the year, at a time that [the wider mobile market grew by nearly 8%.]( One to watch [Watch Kevin Ryan discuss his new AlleyCorp venture fund and the outlook for startups on Bloomberg Television.]( Get fully charged In Japan, chip factory specialist Kajima is battling the elements to deliver [the country’s most advanced semiconductor facility by year’s end.]( India’s Zomato is riding a 260% surge in its share price [as profitability improves.]( Bitcoin’s upcoming software update is [bad news for miners.]( Apple’s Tim Cook is in Hanoi and may announce [further investments in Vietnam this week.]( More from Bloomberg Get Bloomberg Tech weeklies in your inbox: - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Game On]( for reporting on the video game business - [Power On]( for Apple scoops, consumer tech news and more - [Screentime]( for a front-row seat to the collision of Hollywood and Silicon Valley - [Soundbite]( for reporting on podcasting, the music industry and audio trends - [Q&AI]( for answers to all your questions about AI Follow Us Like getting this newsletter? 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