Palo Alto explores robotaxi deal with Tesla
As the city weighs the future of its popular but costly rideshare service, Palo Alto Link, city leaders are exploring a deal with Tesla that would turn local streets into a testing ground for the car company’s newly unveiled robotaxi service.
The city recently held a preliminary discussion with Tesla to discuss a potential partnership, according to Meghan Horrigan-Taylor, the city’s spokesperson. If approved, the deal could supplement the existing taxi service that serves the Palo Alto community, including Palo Alto Link, a rideshare program that made its debut last year.
The discussions come at a time when the city is rethinking its options for providing affordable rides to community members. The free Palo Alto Shuttle, which ran two fixed routes, ceased operations in 2020 as the city dealt with plummeting revenues and shifting commute patterns in the midst of the Covid-19 pandemic. Palo Alto Link, which functions like a cheaper Uber Pool, rolled out in March 2023 as a more nimble and convenient replacement. While its hours of operations and geographic reach are somewhat limited, the service offered cheap and, in some cases, free rides to people trying to get from one part of the city to another.
Palo Alto Link has gained some momentum, with the number of users rising from 2.7 per service hour at the onset of the program to 3.1 this spring, according to staff from the city’s Office of Transportation. Yet it is also facing a funding challenge. The initial rollout was supported by a two-year $2 million grant from the Santa Clara County Valley Transportation Authority. With that grant expiring, the city is now forced to bear the brunt of the costs.
