Zoox Receives California Permit

A bit out of the blue, the California Public Utilities Commission (CPUC) announced that Zoox has received the first permit to transport passengers in self-driving cars in California.

This was a surprise because, until the announcement, CPUC hadn’t even come up in any discussion of self-driving cars, at least as far as I can remember.

CPUC did announce a twin pair of self-driving car pilot programs — one program for vehicles with safety operators (“back up drivers”) and one program for fully driverless vehicles. Zoox’s permit requires safety operators. That said, CPUC pilot program applies to “companies using autonomous vehicles that…are under the CPUC’s jurisdiction…”

http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M212/K893/212893443.PDF

Which companies are under CPUC jurisdiction is not obvious. The CPUC website states:

“The essential services regulated include electric, natural gas, telecommunications, water, railroad, rail transit, and passenger transportation companies.”

I imagine “passenger transportation companies” as something akin to a limited entry, licensed, monopoly-like services. Bascially, taxi companies. There appears to be an ongoing back-and-forth between Uber and CPUC over jurisdiction for regulating human-driven ridesharing services.

Mainly this seems like a reminder of how new self-driving cars are everywhere. Presumably, the self-driving ride-sharing services will be regulated by some government entity. Whether that entity is local or state or federal, and whether it is the Department of Transportation or the Public Utilities Commission or something else, most of that is yet to be determined.

The answers may come down to who steps forward and claims authority.

Trusting The Machine

During my trip home for Thanksgiving, I got a bit of an on-the-nose reminder about why not everyone is willing to trust self-driving cars and artificial intelligence more generally.

I grew up in northern Virginia, where my parents and one of my brothers still live. At the end of this trip home, before driving from my parents’ house to the airport, I mapped the route on my phone. This is standard procedure for me, but my family loves to make fun of me for mapping a route I’ve driven a million times.

In this case, the map instructed me to avoid Interstate 66, which would’ve been the most direct route to National Airport. Instead, Google Maps sent me on a meandering sequence of surface streets.

My dad and I began debating why not to take 66. I assumed there must be a big traffic backup. If I had fiddled with my phone a little more, I probably could’ve verified this. But by this point I was driving, so I just assumed.

My father was certain that Google was “confused” and thought I-66 was a toll road. I had set the route preferences to avoid tolls.

I countered that there is no way Google was wrong about the I-66 toll policy. No tolls on the weekend.

Eventually, my dad grew weary of the surface streets and insisted we merge onto the Interstate. We did that, and the road was empty. Smooth sailing to the airport.

My father’s disdain was vindicated. He will never trust Google Maps over his 30 years of experience driving in northern Virginia. And maybe he’s right.

Ford’s Self-Driving Moves

In the last few weeks, Ford’s self-driving car program has made a number of exciting announcements. First, they announced a pilot self-driving car program throughout the entire city of Washington, D.C., to launch in 2019.

Shortly thereafter, Ford announced its purchase of electric scooter startup Spin. This appears to be another step in the direction of Ford as a mobility solutions provider, following its acquisition of the Chariot shuttle service and the launch of Ford GoBike bicycle rentals.

Next came an impressive series of self-driving car demos for journalists in Miami, Florida. Ford is currently testing self-driving cars in a six square-mile section of the city.

Most recently, Ford announced a partnership with Walmart and other retailers to deliver merchandise using self-driving cars.

In addition to its strategic moves, Ford seems to be improving its ability to communicate its vision for autonomous vehicles. Ford posts on Medium.com appear from Sherif Markaby, CEO of Ford Autonomous Vehicles, LLC, but also from team members in business development, marketing, and engineering.

Markaby recently posted a helpful infographic outlining the different components of the Ford autonomous vehicle ecosystem.

As former Ford engineer Sam Abuelsamid wrote for Forbes.com:

“Ford will not be first to the party. We all know that. But in cooperation with Argo, it is well on its way to creating what seems to be as good an AV system as any out there with smoother operation than much of what I’ve felt from several of its top competitors.”

Car Rental Converges With Mobility

For my latest post on Forbes.com, I interviewed Avis Budget Group Vice President Jeff Kaelin. Our conversation struck me for how much the rental car industry is converging with the broader mobility space.

When I think of mobility, I think of Uber and Waymo and Ford, my old employer. But Avis very much considers themselves a mobility company.

Kaelin boils it down to, “We provide solutions to get from Point A to Point B.”

And also this:

“Future mobility will be connected, integrated, and on-demand. Connected cars put us in a strong position to provide those services,” Kaelin envisions.

EB Tech Day San Jose

This Thursday I’ll be moderating a panel on self-driving cars at EB Tech Day San Jose. The event is hosted by Elektrobit, a Udacity partner and a leading supplier of automotive software, particularly safety-critical software.

On the panel will be a number of self-driving car engineers and experts from Elektrobit and their partner company, iSystem:

  • Chris Schlink, Sr. Application Support Engineer, iSystem
  • Hurley Davis, Director of Engineering, U.S., EB
  • Volker Springer, Sr. Project Manager, EB
  • Chris Thibeault, Head of U.S. Product Expert Group, EB

My panel goes on-stage at 1pm, but the event goes all day, from breakfast to happy hour. A full day of autonomous vehicle technology 🚗

Register to attend and say hello!

Waymo’s Early Days

The early days of the Google Self-Driving Car Project were not that long ago — only 7 years ago, at the beginning of the decade. But that was before the self-driving car goldrush, back when Uber was only operating a limousine service, and before Lyft even existed. A lot can change in 7 years.

The New Yorker goes back to the early days to investigate, in particular, Anthony Levandowski’s days at Google. Levandowski earned $120 million from his time at Uber, but The New Yorker reports that his time was replete with controversy.

“Hiring could take months,” Levandowski told me. “There was a program called WorkforceLogic, and just getting people into the system was super-complicated. And so, one day, I put ads on Craigslist looking for drivers, and basically hired anyone who seemed competent, and then paid them out of my own pocket. It became known as AnthonyforceLogic.” Around this time, Levandowski went to an auto dealership and bought more than a hundred cars. One of his managers from that period told me, “When we got his expense report, it was equal to something like all the travel expenses of every other Google employee in his division combined. The accountants were, like, ‘What the hell?’ But Larry said, ‘Pay it,’ and so we did. Larry wanted people who could ignore obstacles and could show everyone that you could do something that seemed impossible if you looked for work-arounds.”

Worth a read.

Uber To Resume Testing Self-Driving Cars on Public Roads

Uber has requested permission to resume testing self-driving cars on public roads in Pittsburgh, Pennsylvania. As I write on Forbes.com:

“In conjunction with Uber’s request to resume testing autonomous vehicles on public roads, Uber also published a safety report, a letter on safety from CEO Dara Khosrowshahi, and a summary of internal and external safety reviews. Uber also linked to the full 56-page external safety review completed by the law firm LeClairRyan.

Read the post to learn about the many improvements Uber has made and is making to its safety procedures.

Ridesharing Moves Toward Subscriptions

In the last few weeks, both Lyft and Uber rolled out (very different) subscription pricing models.

Lyft’s All-Access Plan offers 30 rides per 30 days (up to $15 per ride) for $299. This is basically a bulk purchase option. A Lyft power user would save $150 per month by subscribing instead of paying per ride. (30 rides * $15 per ride— $299 subscription price =$151 savings)

Uber’s Ride Pass, by contrast, is essentially insurance against surge pricing. For $14.99 per month, Uber users escape the risks of surge pricing, plus they save approximately 15% off of normal fares. A user would probably need to spend $100 or more per month on Uber to come out ahead.

Each of these offers is a tiny, baby step toward all-you-can-eat subscription ridesharing. The marginal cost of each ride probably prohibits Lyft and Uber from diving headfirst into all-you-can-eat ridesharing. Hopefully self-driving cars will lower that marginal cost to the point that it becomes feasible.

My first professional job was with America Online, now AOL. I joined as a college intern in 2001, but there were still veterans around who could recall AOL’s switch from hourly to unlimited pricing.

22 years ago, AOL switched from plans that allowed for metered hourly Internet usage to plans that allowed unlimited Internet access. The pricing change brought in a wave of new customers, along with per-user usage increases that overwhelmed AOL’s infrastructure. It was one of the most significant things AOL ever did.

Ridesharing is getting closer to its all-you-can-eat moment.

KPIT Sponsors 500 Self-Driving Car Scholarships For India

Aspiring Self-Driving Car Engineers in India, apply today for the opportunity to work on autonomous vehicles, regardless of your financial situation!

KPIT, one of India’s leading automotive software suppliers, just announced they are sponsoring 500 scholarships for Indian students to take Udacity’s Self-Driving Car Engineer Nanodegree program!

Apply now for the scholarship!

Since we launched the Nanodegree program two years ago, we have seen tremendous interest from students in India who want to learn about autonomous vehicles. Many of the Indian students who have enrolled in the Nanodegree program now work on autonomous vehicles at great Indian companies like KPIT, Ola, and Hi-Tech Robotics.

The KPIT Scholarships will provide the opportunity for any student in India to work on self-driving cars, regardless of their financial situation.

KPIT is making a tremendous investment in Indian software engineers. We are delighted to be able to work with Kishor Patil and the KPIT team to make this possible!