In a quiet regulatory bombshell, the California Department of Motor Vehicles (DMV) has granted Waymo the largest autonomous-vehicle deployment permit in state history, effectively opening 12,000 square miles of territory stretching from the Napa Valley wine country in the north to the Mexican border in the south.
The new Driverless Operation Permit, issued November 15, 2025, allows Waymo’s fully driverless Jaguar I-PACE fleet to operate without a safety driver on virtually all highways and surface streets in eight counties: San Francisco, San Mateo, Santa Clara, Alameda, Contra Costa, Sacramento, San Diego, and the crucial Los Angeles–Orange County–San Diego corridor. For the first time, a robotaxi service can legally pick you up in San Francisco, drive you 400 miles to San Diego, drop you at the beach, and head back — all without a human ever touching the wheel.
This isn’t just an incremental expansion. It turns Waymo from an urban novelty into a genuine regional transportation backbone.
Key numbers tell the story:
- The approved zone now covers 54 million Californians — roughly 85 % of the state’s population.
- It includes 1,100 miles of freeways (I-5, US-101, I-405, I-805, SR-91, etc.), meaning Waymo can theoretically offer seamless long-distance trips that rival the convenience of owning a car.
- Average one-way fare for the 380-mile SF→San Diego route is projected at $180–$220 when commercial service begins — cheaper than current human-driven rideshare prices ($350+) and competitive with gas + wear-and-tear on a personal vehicle.
The catch? The DMV permit only covers testing and non-commercial driverless operation. To actually charge passengers in the new zones, Waymo still needs final sign-off from the California Public Utilities Commission (CPUC). That approval is widely expected in Q1 2026 for San Diego and Sacramento, with the full LA–SF corridor likely following by mid-2026.
Even so, the psychological impact is already massive. In internal surveys leaked to Reuters, 41 % of Bay Area respondents said they would “seriously consider selling a household car” once Waymo offers reliable airport runs to SFO/OAK/SJC and weekend wine-country loops.
In greater Los Angeles, where the average household spends $12,800 per year on car ownership, Waymo estimates its service could save frequent users $4,000–$6,000 annually on long-distance trips alone.
Waymo isn’t rushing the rollout. The company told investors it will begin “friendly-user” rides (free trips for select locals) in San Diego in January 2026, with paid service starting March–April. Sacramento and the Central Valley corridor follow in summer 2026. The crown jewel — true interstate highway operation between the Bay Area and Greater Los Angeles — is slated for late 2026 after additional mapping and validation runs.
Meanwhile, competitors are scrambling. Cruise still has zero driverless miles in California after its 2023 pedestrian-dragging incident and subsequent permit revocation. Tesla’s robotaxi plans remain vaporware outside of limited Texas and Arizona testing. Zoox is confined to a tiny Las Vegas loop.
For the first time since Uber decimated yellow cabs, a transportation company has a realistic shot at making personal car ownership optional for millions of Americans — not in 2035, but by 2027. And it’s happening in the state that still moves 38 million registered vehicles every single day.
Raise a glass of Napa Valley cabernet (you won’t be driving home anyway). The robotaxi era just went statewide).
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