Tesla has released another update for its robotaxi network and introduced a dynamic pricing model. The new fares are based on factors such as distance, trip duration, and demand – and are still significantly lower than the rates of established providers like Uber or autonomous taxis like Waymo.
Attractive Prices Despite Dynamic Model
Often, "dynamic prices" mean higher costs for users. However, the initial balance at Tesla is positive:
A trip across the Austin geofence – about 11 miles – currently costs only 13.71 US dollars. This corresponds to about 1.25 US dollars per mile.
For comparison:
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Waymo: 22-26 US dollars (approx. 2 US dollars per mile, almost double during peak times)
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Uber: 18-31 US dollars (1.50-2 US dollars per mile, depending on the vehicle and time). For a vehicle the size of a Model Y, prices can even be around 40 US dollars – plus a tip.
This positions Tesla's robotaxi as a significantly cheaper alternative and gives it a crucial advantage in gaining market share from Uber, Lyft & Co.
Step Towards Mass Launch
With the introduction of dynamic prices and the removal of previous price caps, Tesla indicates that the next big expansion step is imminent. The company plans to expand the current operating area of the robotaxi service in Austin by tenfold.
The previously fixed fares seemed more like a short-term marketing element. The new model, on the other hand, is more realistic and likely to last in the long term – even if Tesla will continue to adjust the rates regularly based on real usage data.
App Update and Further Improvements
The new pricing structure was introduced with version 25.7.10 of the robotaxi app. In addition to minor bug fixes, a previous update already brought the possibility for the vehicle to stop directly next to the user, instead of waiting at a predetermined pickup point.
Currently, the service remains available by invitation only and the app is exclusively accessible to iOS users via TestFlight. Nevertheless, the continuous updates show that Tesla is optimizing the user experience step by step – and preparing for a broader launch.
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