Can the robotaxi deal between Hyundai and Waymo steal the present from Tesla?

Just days before Tesla's highly anticipated robotaxi event on Thursday, Hyundai announced a partnership with Waymo that will add Hyundai's Ioniq 5 to the robotaxi operator's fleet.

In the first phase of the partnership, Waymo will integrate its sixth-generation fully autonomous technology, the Waymo Driver, into the Ioniq 5 all-electric SUV, which will be added to the Waymo One fleet over time.

On-road testing of Waymo-enabled Ioniq 5s is expected to begin in late 2025 and will be available to drivers of the Waymo One robotaxi service the following year.

Alphabet-owned Waymo currently operates the only functioning robotaxi service in the United States. A fleet of around 700 self-driving vehicles is already operating in Phoenix, Los Angeles and San Francisco. The service is also being tested in Austin, Texas.

Last year, General Motors' rival robotaxi service Cruise was forced to suspend operations after one of its vehicles struck a pedestrian in San Francisco. Still, GM's Cruise vehicles are expected to resume service next year thanks to a partnership with Uber.

Driverless vehicles have faced two main obstacles to commercialization: the complexity of the technology and strict safety regulations.

Currently, Waymo's existing presence gives it a significant advantage over its competitors. The sixth-generation technology is intended to be able to handle a wider range of weather conditions with fewer cameras and sensors on board. In their joint statement, Waymo and Hyundai emphasized the proven safety of both Waymo technology and the Ioniq 5.

Waymo's technology is based on pre-mapped roads, sensors, cameras, radar and lidar (a laser light radar). It is an approach that is potentially very costly but has received the approval of security authorities.

All of this increases pressure on Tesla to deliver the desired results with the launch of its robotaxi – expected to be called Cybercab.

Tesla's goal was to finally bring full driverless capacity directly to consumers. Tesla owners can already purchase software called “Full Self-Driving” (FSD), which works like an advanced driver assistance system and requires constant monitoring from the driver.

Tesla's FSD relies on multiple onboard cameras to power machine learning models, which in turn help the car make decisions based on what it sees.

However, the technology has not yet convinced all current and former road safety officials.



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