No one's behind the wheel.

Robotaxis are real, at least here in Chandler, Arizona,

where Waymo has been offering fully driverless rides

for more than a year.

Waymo's looking left, Waymo's looking right. All right.

And in August it expanded to San Francisco,

but rides here still have a driver behind the wheel.

The supporting driver does have hands on the wheel,

not always gripping the steering wheel,

but always hovering around the wheel.

It's an important test for the company,

as it could provide a roadmap for expansion

into other cities, but the race is on.

General Motors Cruise is also testing driverless cabs

in San Francisco.

- You could really build a sizable ride-hailing business

if you set up operations here.

- But rising costs and tech limitations

have slowed driverless car companies down.

So can Waymo, with operations in Phoenix

and now in San Francisco,

pick up the pace and bring its robocabs

to more cities and more passengers?

To find out, we spoke to company leaders,

and yes, took a couple of rides.

(bright music)

We're here at Waymo's depot in San Francisco,

a city that represents an important test for the company

as it looks to expand its service, and well,

it's got a lot of cars.

Waymo's ride-hailing service, Waymo One,

is new in San Francisco, but the company,

formerly known as Google's self-driving car project,

has been testing here for more than a decade.

- San Francisco provides

a wide diversity of not only geographies,

but also a diversity of the kind of interactions

that we'll have on the road itself.

- So you can see, we're in a little bit of a busier part

of the neighborhood here.

There are cars parked along the right.

There's a truck here, stopped on loading.

Waymo rides in San Francisco, like the one

the company invited "The Wall Street Journal" to take,

are currently done with a driver at the wheel.

But the company says it's the tech aboard its vehicles

that are making the majority of the decisions.

The tech that I can actually see here,

what are the main components?

- The LiDAR, which is the 360 degree at the top,

while the smaller ones are on the side,

the perimeter LiDAR.

We have cameras, 29 different cameras,

positioned throughout the vehicle,

and radar is a third kind.

And then lastly, within the trunk

is where we have the majority of our compute systems,

so the systems that take all those signals together

and combine it, run it through our software,

to help the car determine what it should do next.

- All of Waymo's passengers, or Trusted Testers,

in San Francisco have signed nondisclosure agreements

that prevent them from sharing their experience.

Well, except for me.

So right now, Waymo's driving us around

a pretty residential area.

Lots of stop signs. No stoplights on the route so far.

I think seeing the supporting driver's hands

hovering and sometimes grabbing the wheel itself

is providing a little bit of additional security for me.

Waymo really likes to stick to the speed limit.

Last week, a Waymo car hit a pedestrian in San Francisco.

The company said the vehicle was being driven

by a human driver in manual mode

when it struck the pedestrian,

who was treated for injuries at the scene

and transported to a hospital by ambulance.

The company said, "The trust and safety of the communities

in which we drive are paramount to us,

and we will continue investigating this incident

in partnership with local authorities."

So far, seven companies, including Waymo and Cruise,

have received permits from the State

to test autonomous vehicles without a driver.

But Waymo wants to be the first

to offer its service to the public.

How far off do you think you are from being able to

pull the autonomous specialists from the vehicle?

- Our current focus is really continuing to develop

a safe and convenient experience for all of our riders,

so no specific timelines to share at this time.

- [Adam] Success in San Francisco could help provide

a revenue-generating business for Waymo.

Analysts estimate its cars cost $200,000

and it can't yet charge passengers for rides in the city.

- They don't need to operate a robotaxi fleet

in a ton of markets

because if you look at the business performance

and results of Uber and Lyft, they mostly come from

just a handful of cities around the world, like 10 cities.

- [Adam] WSJ reporter Tripp Mickle covers Alphabet.

He lives in San Francisco and, like many residents there,

has been seeing Waymo's cars a lot.

- They seem to be on a rotation or a loop

in terms of what routes they drive.

- To see what Waymo could look like in future markets,

we went to Waymo's first location,

a 50-square-mile area around Chandler, Arizona.

Here, Waymo has pulled the driver support

and riders can now hail robotaxis themselves.

The wheel is moving by itself.

When did you know it was time to pull the driver

out of the Waymo here in Chandler?

- We evaluate the performance of the driver,

the Waymo driver, on a given operation domain.

We evaluate it against general features of topography,

geography, weather, and also specific features

such as the unprotected left turns

and ability to handle a large parking lot.

That is the process that we used to release our technology

here in Chandler.

(bright music)

- After traveling more than 65,000 miles around Chandler

without a human behind the wheel, Waymo opened up

its ride-hailing services to passengers like me,

willing to try.

While there, I spent about an hour in the back of a Waymo.

We're turning. (laughs) There it goes.

I took three separate rides, including one in the dark.

Waymo encountered construction,

an emergency vehicle, (siren wailing)

and took three rights to avoid a left,

though I did experience one unprotected left turn.

Waiting for intersection to clear,

and it is starting and stopping a lot.

Okay. You may be good now, Waymo.

Ooh. (exhales) All right, we did it.

- [Waymo] Arriving shortly.

- [Adam] Waymo was a defensive driver,

but the experience took some getting used to.

The biggest hurdle, trusting the tech.

- Trust needs to be earned

and we earn it by our excellent track record.

And we also earn it through transparency

and really engaging with the public.

- [Adam] Before opening up its ride-hailing service

to the public,

Waymo published safety data from its tests around Chandler.

It reported 18 collisions

over a span of about 6 million miles driven.

- None of those collisions were serious in nature,

but regardless, every single event is a learning experience.

- Do you have any updated data

since launching the ride-hailing service here in Chandler?

- And I'll tell you that the positive trends that we saw

in that first report, where we evaluated 6 million miles,

has continued through our service.

- [Adam] The company says it completes hundreds of rides

in the Chandler area each week

and has served tens of thousands of riders there.

- It's put them at the forefront

of the driverless car effort,

but it's also Chandler, Arizona.

It's not, you know, in 50 states, or much less two states.

It's really in one, you know, one suburb of Phoenix.

- Waymo's ambitions, however, are greater.

It's now testing in 25 cities across the US,

though the company wouldn't say

where it plans to offer rides next.

What's slowing Waymo down

from expanding to cities across the US?

- It's technology, really.

There's been a realization, broadly,

across the self-driving industry

that their ambitions and hopes of creating

something that was like a computer model

that can be scaled and dropped anywhere, in any city,

is not totally realistic.

- It took Waymo three years of on-the-streets testing

before it offered its ride-hailing service

in the Chandler area alone.

What can we draw from that pace

for Waymo's future expansion?

- I don't know if that's a great proxy.

We build on our experience and our technology

such that it takes us less and less time

to learn the intricacies and be able to drive safely

and reliably in any market.

- Because of this, Waymo expects to pick up the pace,

and it might need to.

Cruise has raised more than $9 billion

to support its robotaxi efforts.

Waymo has raised nearly 6 billion.

But just how many riders will hop in the back

of one of these robotaxis, remains to be seen.

Ride done.

- [Waymo] We've arrived.

(bright music)