Driverless cars are speeding onto America's streets, but whether the public will trust robotaxis remains an open question.
Nearly two-thirds of Americans said they would not want to ride in a driverless passenger vehicle if they had the opportunity, according to a Pew Research Center Survey. That's because residents in cities that have yet to experience robotaxis remain unfamiliar with the technology while those in cities with driverless cabs have not yet forgotten about high-profile accidents involving other companies, like GM-owned Cruise.
Now Tesla, the loudest and most bullish self-driving proponent of them all, is due to unveil its long-awaited robotaxi after years of unfulfilled promises.
The company's existing autonomous driving technology, where a human is still at the wheel, has drawn the scrutiny of regulators and multiple lawsuits after hundreds of crashes. Experts say a great presentation from CEO Elon Musk won't guarantee a safe robotaxi network.
Tesla's upcoming robotaxi launch threatens to throw the whole autonomous vehicle space off course.
Alphabet-owned Waymo is the leader in the space, with the company claiming it has notched more than 22 million driverless miles. It has proven that there is strong consumer demand, with weekly paid rides in San Francisco, Los Angeles, Phoenix and Austin doubling in just a couple months. And Waymo has worked on building its reputation, launching an online safety hub with data arguing that its cars are safer than human drivers.
Besides Tesla, other competitors are also looking to jump into the race.
Money Report
Amazon says it is getting ready to roll out its fleet of Zoox cars, and Cruise is resuming operations after a 2023 accident led regulators to ground the fleet. Wall Street is already looking ahead to a driverless future, with one analyst arguing that if it hadn't been for generative AI, 2024 would have been the year of the robotaxi.
As driverless networks scale, one of the fiercest debates is whether ride-sharing will survive. Robotaxis may cause consumers to question if they really want to book an Uber or Lyft and talk to a stranger, sit in someone else's car and tip a human if there is a driverless alternative. Uber has hedged its bets by inking high-profile deals with autonomous vehicle companies, but it's unclear how long those partnerships will last.
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