Strange-looking cars are on Houston streets, trucks carrying freight for major companies like AP Moller Maersk and FedEx are shuttling up and down the Interstate 45 corridor, and local governments in the metro area are signing agreements for flying taxis. If some companies have their way, those vehicles could be driverless as early as next year.
When Cruise LLC, a General Motors-backed startup offering self-driving taxis in urban areas, began operating in Houston, the city began discussions to set up a working group to centralize communications relating to autonomous vehicle incidents and complaints, Jesse Bounds, director of the Mayor's Office of Innovation, confirmed. After the company paused operations, Bounds said the group’s purpose became “obsolete,” but the city is now reevaluating the need for the group in light of Cruise’s return.
The city could release reports and conduct community engagement if a need is determined, according to Bounds.
Autonomous vehicles are projected to be a big market. The global autonomous vehicle market could grow from $1.9 trillion in 2023 to $13.6 trillion by 2030, according to a June report from Fortune Business Insights. Breakthroughs in artificial intelligence and sensor technologies are advancing the adoption of self-driving cars and trucks.
But the technology has faced opposition due to safety concerns, both locally and elsewhere.
Cruise had paused operations and cut staff in October — only weeks after initially launching service in Houston — after one of its cars dragged a pedestrian in San Francisco without recognizing she was under the car’s wheels. In addition to Houston, Cruise has resumed testing in areas of Dallas and Phoenix.
In late June, Cruise resumed supervised self-driving testing in Houston with safety drivers. At the time, the company said it informed Houston officials of its intent to return and offered lessons to first responders dealing with AVs. But Bounds told the Houston Business Journal that strategy is atypical of AV operators in Texas, who are not required to inform local governments of their plans.
“City officials met with Cruise prior to the resumption of service but were not made aware of the full scope and timeline of testing until after the public announcement,” Bounds said in an emailed response to HBJ questions.
Bounds said that as far as he is aware, city officials have not met with self-driving trucking companies California-based Kodiak Robotics or Pittsburgh-based Aurora Innovation Inc. (Nasdaq: AUR). Both companies are building Houston infrastructure in the Houston area and have plans for driverless trucking by next year.
In Texas, local governments are pre-empted in regulating driverless vehicles by the state government through Senate Bill 2205, which was passed during the Texas Legislature’s 85th session in 2017.
Senate Bill 2205 places governance of autonomous vehicles under the state Department of Public Safety. A policy brief about the law from Texas A&M University’s Transportation Policy Research Center noted that there was still uncertainty over who is responsible if something goes wrong.
Cruise is not the first driverless vehicle company to take to Bayou City streets. Mountain View, California-based Nuro Inc. announced it would pilot driverless grocery deliveries for Kroger Co. (NYSE: KR) and Walmart Inc. (NYSE: WMT) in Houston in 2019 and added partnerships with CVS Pharmacy (NYSE: CVS) and Domino’s Pizza (NYSE: DPZ) in following years. But a tough funding environment forced the company to slash staff and wind down development last year, its founders said.
Bounds stressed that the city is still an open place for AVs to do business, provided it is done safely. He also said it was possible for the city itself to incorporate AV technology into its fleet if it proves to be cost-effective.
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