US cities tighten their grip on robotaxis
With Congress having failed for years to pass federal rules for autonomous vehicles, US cities and states are writing their own restrictions on robotaxis. Companies seeking to expand face an increasingly complex patchwork of regulations.
US cities and states are increasingly adopting their own rules for self-driving taxis, known as robotaxis, because federal legislation on autonomous vehicles has been stalled in Congress for years. As a result, industry players such as Waymo, Zoox and Aurora must adapt to an uneven set of regulations that sector leaders had hoped to avoid.
From open arms to restrictions
The first state to legalize self-driving cars on public roads was Nevada in June 2011, driven by lobbying from Google, which saw the state as a good place to test its prototypes. At the time, many local governments welcomed such vehicles. Now they are drafting laws to rein the technology in.
Municipalities have no power over manufacturing standards, but they hold broad authority over street operations. Minneapolis is considering requiring human monitors inside autonomous vehicles, which would effectively ban driverless operation. The San Diego City Council passed a resolution seeking to keep Waymo out of the airport and give local agencies direct control in emergencies. Austin firefighters have raised concerns about the Tesla Cybercab, which has no steering wheel or pedals, and want developers to set up rapid-response towing and communication protocols.
The pushback is not limited to Democrat-led cities. New York City, Chicago and Washington, DC still have not legalized driverless cars, but Republican-led states including Kentucky, Oklahoma, South Dakota and Iowa are also weighing tighter rules. In California, several bills would let cities cap fleet sizes, limit operating hours or ban permits. Culver City explored emergency moratoriums on building permits for AV fleet facilities, while Santa Monica used noise and traffic ordinances to restrict round-the-clock charging hubs.
What comes next
Companies are looking abroad: Waymo plans to expand in London, Tokyo and Munich, while Uber is preparing vehicles for Manchester, Madrid and Dubai. Still, the US remains the industry's best chance to turn a profit, so firms prioritize states whose laws explicitly prevent cities from banning the technology. The Autonomous Vehicle Industry Association, a trade group, is pushing for broader preemption powers.
Even if Congress passes a national framework such as the proposed SELF DRIVE Act, cities and states would keep authority over local road use. Cities are therefore likely to remain the main arbiters of robotaxi permission for the foreseeable future.
