California allows Chinese robot taxi company WeRide to test with passengers By Reuters

(Reuters) – Chinese self-driving startup WeRide has received California approval to test its driverless vehicles with passengers, according to a permit from the state’s utilities regulator.

The move comes as the company seeks a valuation of up to $5 billion from its New York IPO, even as the U.S. is set to ban vehicles with Chinese-developed systems, according to people briefed on the matter.

The permit from the California Public Utilities Commission (CPUC) — issued earlier this month for three years — allows WeRide to transport passengers in test vehicles with and without a driver. WeRide will not be allowed to offer rides to the general public and cannot charge any fares.

WeRide has 12 active vehicles and will operate in San Jose and nearby areas, the CPUC said in a statement to Reuters.

Developing and commercializing robotaxis in the US has been more difficult than expected, with regulatory hurdles, opposition from city agencies and public outrage.

Alphabet’s (NASDAQ: ) Waymo, which has about 700 vehicles in its fleet, is the only U.S. firm operating unmanned robotaxies that collect fares.

General Motors (NYSE: )’ Cruise resumed testing with safety drivers in April after one of its vehicles struck a pedestrian last year.

WeRide, founded in 2017, first received permits from California to test its driverless vehicles in 2021. The company, which also makes autonomous pickup trucks, buses and street sweepers, has driverless permits in Singapore and the Emirates United Arabs.

WeRide did not immediately respond to Reuters requests for additional details.