Google is planning to make its self-driving car unit a standalone company in 2016, reports Bloomberg. According to the report, the company will offer rides for hire and be under the Alphabet Inc. corporate umbrella, undisclosed sources told the paper. The source reportedly said the fleets might first be launched in San Francisco and Austin, Texas, United States, where Google has focused its testing to date. The report suggests Google may deploy a range of large and small vehicles in areas like college campuses, military bases, or corporate office parks. Separately, Automotive News reports that the California, United States, department of motor vehicles (DMV), has proposed rules that would make driverless cars illegal and require autonomous cars to need a steering wheel and pedals when operating on California roads; they would also need a licensed driver with an "autonomous vehicle operator certificate" capable of taking control. These vehicles would need to meet new safety and performance requirements, including testing and certification by a third-party auditor. To get a three-year operating permit, manufacturers would need to submit regular reports on safety and usage of their self-driving cars. A law passed in California in 2012 orders the state's DMV to issue rules for testing and use of autonomous vehicles.
Significance: The rumours about Google's potential business directions are an indicator of how the company presumes to make money, effectively challenging both services like Uber and Lyft as well as traditional taxi services. Uber is also rumoured to be pursuing its own autonomous fleet, though details are vague. However, in taking on the idea of operating a fleet, Google may be envisioning a more complex business than simply building and selling vehicles – as well as obtaining access to those consumers as they travel from one location to another. Relative to California's potential legislation, the DMV needs to get public comments before a decision is taken, with meetings scheduled in January and February 2016 for that purpose. Whether California institutes this particular rule or some other, it does highlight one of the obstacles to mass deployment and commercialisation of autonomous vehicles: the regulatory environment. While that does pose a challenge, over time and proof of safety, onerous conditions may ultimately be rolled back.
