Joel Angel Juarez/Reuters; Bob Daemmrich/ZUMA Press Wire
Tesla and Waymo want access to crucial territory that accounts for a significant slice of the ride-hailing pie: airports.
Airports are among the most lucrative areas for ride-hailing businesses because they’re one of the few hubs that provide round-the-clock trips.
Tesla is in the early days of its ride-hailing service and hasn’t been approved to provide autonomous rides for the public in California, but the company is making airports a priority.
In a memo Business Insider obtained in July, roughly a month after Tesla launched Robotaxi in Austin, the EV maker notified the California Public Utilities Commission (CPUC) that it had begun “initiating engagement” to secure permits for “pick-ups/drop-offs” for the Bay Area’s three main airports — San Francisco, San Jose, and Oakland.
Spokespeople for each of the airports confirmed to Business Insider that they have been approached by Tesla.
Kaley Skantz, a spokesperson for the Oakland San Francisco Bay Airport, told BI that the airport has been in contact with “Tesla’s Public Policy and Business Development team, but we have not yet met with them.”
Similarly, Francis Tsang, a spokesperson for San Francisco International Airport, told BI that the airport has begun “scheduling discussions” on the matter.
At the moment, Tesla has a permit to provide ride-hailing services to the public only with a driver behind the wheel, per state regulations.
Terrie Prosper, a CPUC spokesperson, told BI that Tesla holds a TCP, or Transportation Charter Party, permit, which is distinct from an autonomous vehicle authorization.
Prosper said Tesla does not have a “Drivered Pilot AV” permit, which means the company cannot provide a “passenger service” with an autonomous vehicle, even with a driver behind the wheel.
“AV authorizations (which Tesla does not hold from the CPUC) allow for the testing and deployment of autonomous vehicles with or without a driver,” Prosper said.
Julie Jarratt, a spokesperson for the San Jose Mineta International Airport, said that Tesla has inquired about a permit to operate a “TCP ride-hailing service” at the airport, though “none has been issued.”
A Tesla spokesperson did not respond to a request for comment.
Waymo way ahead
Alphabet’s Waymo is the only company to secure a permit for autonomous vehicle operations at two US airports. It began offering public rides at the Phoenix Harbor International Airport in 2022.
On September 4, the company announced it received authorization to offer fully autonomous rides at San Jose’s Mineta International Airport. Waymo said that it will begin testing in the fall and offer commercial rides “later this year.”
The company secured a permit in March to map San Francisco International Airport’s roadways.
Tsang, the SFO spokesperson, said that the airport continues to meet with Waymo “on the terms of a permit for operations.”
“There is no set timeline for this, but we are meeting actively on this,” Tsang said.
A Waymo spokesperson declined to provide further comment.
Ride-hailing is a cash cow for airports
Airports are a money-maker not just for ride-hailing businesses but also for the airports themselves through trip fees and permit fees.
Uber reported in its latest SEC filing that 15% of its “mobility gross bookings” were trips that were started or completed at an airport.
Lyft said in its 2024 economic impact report that 61% of its riders have used its service to get to or from an airport.
“Those are the most lucrative rides,” Lindsey Cameron, a Wharton assistant professor of management, whose research focuses on AI and gig work, previously told BI. “You’ve got a captive audience who wants to go home, and so they’re willing to pay.”
San Francisco International Airport also has seen an uptick in rides provided by ride-hailing companies, which has translated to more revenue for the airport.
The airport reported in its 2024 fiscal year financial statement that the number of pick-ups and drop-offs provided by “transportation network companies” totaled 9.4 million.
That has amounted to $51.7 million in “trip fee revenue,” the report said.
The post Tesla and Waymo are gunning for coveted airport access appeared first on Business Insider.
