Welcome to the Ride AI newsletter: your weekly digest of news and intelligence at the intersection of technology and transportation.

Time’s running short, so we’ll keep this one brief: Space is nearly full at the inaugural Ride AI summit, happening next week on April 2nd in Hollywood (view the schedule here).

Get Tickets to Ride AI

This exclusive one-day summit will bring together CEOs and other executives in autonomous vehicle technology and AI-powered hardtech to align perceptions with current reality. Join us as we dive into the most practical and pressing challenges facing the industry today, emphasizing cutting-edge insights, meaningful discussions, and valuable commercial opportunities.

Now, Here’s What’s Happening.

Amazon’s Zoox agrees to a recall on robotaxis after a software bug caused unexpected braking issues. The recall affects 258 of Zoox’s Toyota Highlander vehicles with software predating November 2024. NHTSA had originally opened the probe after motorists were injured in a pair of rear-end collisions related to the braking problem. Although the issue had since been remedied, Zoox agreed to the recall “in light of NHTSA’s position and in the interest of promoting transparency.”

I’m a bit split on this whole recall business. The word “recall” carries a lot of weight with consumers, because it has traditionally been associated with hardware issues in cars actively on the road. Although transparency is great and we absolutely should have a reporting system for autonomy-related crashes, a recall over a software issue that has already been fixed seems unnecessary, and would only instill fear in potential riders. Maybe in cases like these some sort of changelog bulletin board would be more helpful and less hysteria-inducing.

Tesla has been granted a passenger transport permit by the state of California… but not for a robotaxi. Instead, this standard permit granted by the CPUC is one that allows Tesla to operate a transportation service. Every ridehailing company has to obtain one, including Waymo, Cruise, and Zoox. Tesla applied for this particular permit, known as a transportation charter permit (TCP), back in November 2024. It grants Tesla the right to operate vehicles they own using their own employees as drivers.

This is distinct from a transportation network company (TNC) permit, which allows companies to operate an online network that connects drivers to riders. Tesla will also need to acquire a TNC permit if it wants to realize its robotaxi ambitions, so be on the lookout for that application. It’s also worth noting that Tesla has not sought to participate in the state’s Autonomous Vehicle Passenger Service Program in any capacity yet.

In Other News...

• Why Mark Rober’s Tesla Autopilot stunt was bunk
• Waymo is now working on a “teen mode” for parents who want to use robotaxis like school buses
• Nvidia announced a slate of big new partnerships with GM, Gatik, and Torc at GTC.

Lyft will roll out driverless rides “as soon as this summer” after signing agreements with May Mobility, Mobileye, and Marubeni.

The news suggests Lyft is closer to unleashing robotaxis onto its platform than previously thought. So it’s not surprising that, in a recent blog post, the company attempted to reassure drivers that this autonomous shift won’t threaten their livelihoods:

Some think of rideshare as a zero-sum game, where every new AV on the road takes a ride away from a driver. Our experience and data suggests this is untrue. In Phoenix and San Francisco, the rideshare market has grown faster than the national average. That’s because AVs don’t just compete with drivers for a slice of the rideshare pie; they grow the pie.

While market expansion is plausible, a bigger pie doesn’t guarantee drivers will maintain their current portions—as AV costs decrease and reliability increases, the economic incentives to replace human drivers will only strengthen.

Lyft’s roadmap does acknowledge the driver displacement question. The company envisions drivers transitioning from behind the wheel to becoming something like robot minders, with some potentially owning small autonomous fleets. This vision mirrors Tesla’s network model and draws explicit parallels to Airbnb’s approach, where individuals become micro-entrepreneurs by purchasing residential properties specifically for platform rental.

However, Lyft should anticipate challenges similar to what Airbnb has encountered. Hotels remain the preferred choice for many travelers seeking consistency, safety, and amenities—suggesting that in the autonomous future, large fleet operators may ultimately dominate through reliability and economies of scale, potentially squeezing out the small operators Lyft envisions.

Alright, that’s it from me… until next week!

PS: Get your Ride AI tickets. I’ll be there for a session on the rise of Chinese AVs!

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