California greenlights WeRide’s passenger robotaxi tests
WeRide, a Chinese autonomous vehicle company, is now one of several companies in California permitted by the California Public Utilities Commission (CPUC) to conduct passenger-carrying tests of its driverless vehicles.
Earlier this month, the company was approved for a three-year permit that allows it to transport passengers in both driver-operated and driverless test vehicles in San Jose and surrounding areas.
According to the CPUC, WeRide currently operates 12 active vehicles within the state of California. The firm is permitted to test its vehicles with the stipulation that it will neither offer rides to the public nor charge fares. This condition is typical for firms testing autonomous vehicles in California.
These developments are unfolding amid rumours that WeRide is seeking a valuation of up to $5 billion for its New York-based Initial Public Offering (IPO). However, sources familiar with the matter have also confirmed potential challenges due to ongoing efforts to ban vehicles featuring any China-designed systems. If these developments continue, they could significantly impact US-based international firms in implementing a self-driving vehicle strategy.
The company has been operating since 2017 and has gradually expanded its presence in the driverless vehicle industry. In 2021, WeRide was granted permits to test driverless vehicles without passengers in California and has also operated in Singapore and the United Arab Emirates. If WeRide initiates driverless operations in both California and other locations, it will underscore its aspirations for international expansion and its intent to secure a niche in major markets. Additionally, WeRide offers a wide range of products, from robotaxis to autonomous vans, buses, and even street sweepers.
Numerous obstacles have significantly impacted the US autonomous vehicle landscape for both domestic and international companies. Concerns include regulatory challenges, opposition from city agencies, and limited public acceptance. To ensure that robotaxis can safely interact with other vehicles, progress in developing and commercialising these solutions has been particularly slow. The technology has been slow to enter public spaces as US regulatory organisations have been cautious.
Currently, Alphabet’s Waymo is the only company operating uncrewed robotaxis that collect fares. It operates a fleet of about 700 vehicles. The technology’s limited commercialisation suggests the industry faces both technical and regulatory challenges. Moreover, other leading market players have experienced setbacks in their autonomous vehicle programs. For instance, General Motors’ Cruise division is now testing its cars with safety drivers, having had to suspend testing after one of its vehicles struck a pedestrian.
As a Chinese company, WeRide will undoubtedly face more scrutiny and perhaps more regulatory restrictions. The geopolitical climate and proposed bans on Chinese-developed autonomous vehicles and software-supported solutions make its operations significantly more complex than those of its closest non-Chinese competitors.
In the course of the testing campaign launched by WeRide, it has become increasingly clear that its progress, safety record, and ability to navigate the regulatory landscape in the US will attract significant interest from various stakeholders. In this context, developments in California may provide insights into the performance of the service and public acceptance, especially as WeRide reportedly prepares to launch an IPO.
In the coming months, we will observe whether the company’s passenger-carrying tests in California yield significant results. Consequently, its ability to manage regulatory risks associated with quality concerns may influence its US testing program and international expansion plans.
(Photo by Timo Wielink)
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