California allows Chinese robotaxi firm WeRide to test driverless vehicles

China-based autonomous driving startup WeRide has received approval from California's Public Utilities Commission (CPUC) to test its driverless vehicles with passengers aboard.

The permit, granted earlier this month, allows WeRide to conduct the tests in San Jose and surrounding areas over the next three years. However, the company is restricted from offering rides to the general public and cannot charge fares for the test rides.

WeRide, which currently operates 12 active vehicles, has been navigating regulatory challenges as it works to commercialize its robotaxi services in the U.S. The path has been difficult, with obstacles such as stringent regulations, opposition from city agencies and public concerns.

Despite the challenges, WeRide is pushing forward as it seeks a valuation of up to billion in its upcoming New York initial public offering (IPO), even as the U.S. considers restrictions on vehicles with Chinese-developed systems.

WeRide first received permits to test its vehicles without passengers in California in 2021. The company, founded in 2017, is also actively developing autonomous vans, buses and street sweepers and holds driverless permits in Singapore and the United Arab Emirates.

While Waymo, owned by Alphabet, remains the only U.S. company operating uncrewed robotaxis that collect fares, WeRide is among the growing number of companies vying for a foothold in the competitive autonomous driving market.

(With input from Reuters)