The Rise of Robotaxis: How Waymo, Tesla, and Uber Are Shaping Driverless Rides

As rapid technological progress defines the 21st century, it’s still possible to be amazed when science fiction becomes reality. One such example is the rise of robotaxis, with companies like Waymo, Tesla, and Uber pioneering advances in driverless technology. As of mid-2025, these industry leaders are not only testing but actively deploying robotaxis in various U.S. cities, signaling a major shift in urban transportation.

In this edition of Under the Hood, let’s explore what robotaxis are, the players involved, and what they mean for the industry and everyday drivers.

What Are Robotaxis?

Robotaxis are autonomous vehicles designed to provide ride-hailing services without a human driver. Equipped with an arrow of advanced sensors including LiDAR, radar, ultrasonic sensors, and cameras that feed real-time data to onboard AI systems, these systems aim to deliver convenient, efficient, and safe transportation. 

The Society of Automotive Engineers (SAE) defines automation on a scale from Level 0 (no automation) to Level 5 (full automation). Most robotaxi services currently operate at Level 4, meaning they can perform all driving tasks within specific conditions without human intervention,  but may still require remote supervision. Level 5 autonomy, complete self-driving in all environments, is thus still largely theoretical.

Waymo’s Real-World Robotaxi Operations

As the first company to launch a fully autonomous, publicly available ride-hailing service, Waymo remains the leading light in robotaxi development. Originally Google’s self-driving car project, Waymo has since expanded its operations across several U.S. cities.

As of May 2025, the company was providing over 250,000 paid robotaxi rides each week in Phoenix, San Francisco, Los Angeles, and Austin; a dramatic increase from just 10,000 rides per week in 2023, surpassing 10 million total rides to date.

Safety has improved alongside this growth. While the number of collisions rose in absolute terms, from 17 in 2022 to 132 in 2025, the collision rate dropped sharply, from 147 to just 7 per 100,000 rides. This 95% improvement highlights how the system learns and scales effectively over time.

Waymo’s vehicles, based on the all-electric Jaguar I-PACE, can be hailed via its dedicated app or the Uber app in select cities. Riders are greeted by an empty driver’s seat, with each car monitored remotely by Waymo’s operations center in case of anomalies.

Tesla’s Vision: The Cybercab

EV giant Tesla has entered the autonomy race with the forward-looking Cybercab: a compact, fully driverless electric vehicle designed specifically for ride-hailing. Unveiled in late 2024, the two-seat EV features no steering wheel or pedals, underscoring Tesla’s push toward Level 5 automation: full autonomy.

Production is scheduled to begin in 2026 at Tesla’s Gigafactory in Texas, with the company aiming to manufacture up to 2 million units annually. Priced at $30,000 per car, the Cybercab is positioned to be a highly competitive option in the robotaxi market.

Unlike many rivals that rely on LiDAR and high-definition mapping, Tesla’s Full Self-Driving (FSD) system uses a camera-based neural network. This approach has sparked both praise and criticism, especially amid ongoing federal investigations into FSD’s performance in adverse weather following several fatal and widely publicized incidents.

Whether the Cybercab fulfills Elon Musk’s ambitious vision remains to be seen, but its launch signals Tesla’s intent to be a dominant force in the driverless ride-hailing space.

Uber and Other Competitors

While Waymo and Tesla focus on building their own autonomous technology from the ground up, Uber is taking a different route. By positioning itself as a platform for AV partnerships, Uber aims to enter the robotaxi market without developing self-driving systems in-house. After a failed attempt to create its own AVs was abandoned following a fatal crash in 2018, Uber now relies on partners like Waymo to provide the technology, while it focuses on managing the rider experience.

In 2024, Uber and Waymo expanded their partnership to bring autonomous ride-hailing to Austin and Atlanta. In these cities, users can request a robotaxi directly through the Uber app and be matched with a Waymo vehicle.

This partnership model allows Uber to scale its offerings without the immense R&D costs of building its own fleet. It also provides a compelling example of how legacy ride-hailing companies might innovate to protect their market position in the autonomous era.

Uber isn’t alone. Other AV companies like Cruise (backed by GM), Zoox (owned by Amazon), and Baidu Apollo are also running or planning their own robotaxi services. However, most are still working through early-stage challenges, including city-specific regulations, public backlash after minor incidents, and ongoing technological refinement, before reaching widespread deployment.

What’s Holding Robotaxis Back?

Despite significant momentum in recent years, several factors continue to limit the wider adoption of robotaxis:

1. Regulatory Complexity

Autonomous vehicle laws vary widely across U.S. states, and local governments can block robotaxi operations due to safety concerns or public opposition. This fragmented regulatory landscape makes it difficult for companies to scale services beyond the state level.

2. Public Skepticism

Even as the technology improves, many people remain uneasy about riding in a driverless car, especially after high-profile incidents involving Tesla’s Full Self-Driving system or Cruise vehicles in cities like San Francisco. Public trust is essential for nationwide adoption, and a single widely reported failure can cause lasting reputational damage.

3. Technical Edge Cases

Despite progress in AI, autonomous systems still struggle with unpredictable real-world scenarios, such as jaywalking pedestrians, emergency vehicles, or sudden road changes. Adverse weather conditions like snow or heavy rain present further challenges, even for the most advanced systems.

What This Means for the Car Buying and Auto Auction Market

As the robotaxi industry grows, its effects are already reaching the used car and salvage vehicle markets. With companies like Waymo, Tesla, and Uber scaling up their self-driving fleets, there will likely be a growing number of fleet vehicles entering the used car market, especially as early robotaxis reach the end of their operational life or are replaced by newer models.

These vehicles, including modified electric models and AI-equipped units, will likely appear at salvage and wholesale auto auctions. That means buyers on platforms like AutoBidMaster could soon see opportunities to bid on and buy retired robotaxis, vehicles that are often well-maintained, high-mileage, and ideal for parts or rebuild projects.

Robotaxis also emphasize the growing value of advanced vehicle tech like ADAS, electric drivetrains, and remote diagnostics. Savvy auto-bidders and rebuilders should prepare for more EVs and semi-autonomous models entering the salvage market. Plus, with rising demand for sustainable transport options, these vehicles may offer solid resale potential beyond repair and conversion

What This Means for the Ridesharing Industry

The impact of robotaxis will be felt across the transportation landscape, especially by those who rely on driving for income. For gig economy drivers, the rise of autonomous fleets poses a real threat. As companies automate more routes, many drivers may find fewer opportunities available. While new jobs could emerge in areas like vehicle maintenance and remote fleet monitoring, these roles won’t necessarily replace driving work on a one-to-one basis or suit the same workers.

Cities may also feel the shift. On one hand, robotaxis, especially electronic ones, have the potential to reduce emissions and ease congestion if they replace private car ownership or support shared rides. On the other hand, there’s a risk they could increase traffic if people begin using them in place of public transport or walking short distances. The balance will depend heavily on regulation and how services are priced and deployed.

For consumers, the appeal is clear: potentially lower fares and greater convenience. With no driver to pay, ride costs could fall, especially during busy periods. Robotaxis could also improve mobility for those who can’t drive, like elderly passengers or people with disabilities.

Ultimately, robotaxis are more than just a new way to get from A to B. They represent a shift in how cities function, how people move, and how the transport economy operates. The benefits could be significant, but only if the transition is handled carefully and equitably.

Are Robotaxis the Future?

From Waymo’s proven track record to Tesla’s forward-looking Cybercab and Uber’s AV platform strategy, the robotaxi revolution is here to stay. Yet implementation remains uneven across the country. While cities like Phoenix and Austin enjoy early access, others must wait for infrastructure, and public trust, to catch up.

One thing is clear: the next decade will bring dramatic changes to how we travel. Whether we embrace robotaxis as a liberating innovation or approach them with caution, they are certain to reshape our roads and our lives, with or without us behind the wheel. And as this shift unfolds, it’s clear that the car-buying experience will evolve, too. At AutoBidMaster, we help everyday buyers and dealers access affordable used and salvage vehicles, including the next generation of electric and tech-equipped cars. With autonomous tech gaining ground, tomorrow’s car auction inventory is already taking shape today.

Want to get ahead of the curve? Start browsing for EVs and tech-enabled vehicles at AutoBidMaster today.

Sources (accessed June 2025):
– The Wall Street Journal
– Business Insider
– Le Monde
– Waymo
– TeslaRati
– Uber Investor
– MySanAntonio