By Hyunjoo Jin

SAN FRANCISCO, Reuters – Waymo Inc (NASDAQ:) Wednesday announced that it had begun offering driverless rides for employees in San Francisco. This accelerates a race against General Motors Co (NYSE :).-backed competitor Cruise) to commercialise this technology in densely populated cities.

Waymo introduced self-driving cars to downtown Phoenix employees, along with safety drivers. The goal is to eventually open the vehicle to public testing.

“Operating fully autonomously in multiple markets — in addition to Waymo’s growing trucking operations — is a critical validator of the scalability of Waymo’s operations and technology,” it said in a statement.

Waymo has not yet stated when and if it will charge its customers to ride in San Francisco. The company has requested a regulatory permit.

Waymo, a self-driving technology innovator, launched the first U.S. driverless taxi company in 2020. This was more than a decade ago after Waymo’s original creation in 2009, as part of a Google project. While it gives paid rides to hundreds of people a week using Chrysler minivans, Waymo’s service has not expanded beyond suburban Phoenix areas that cover about 50 square miles. [L1N2R80CD]

Waymo started offering autonomous rides to San Francisco’s limited population in August using Jaguar electric vehicles with sensors like spinning lidars.

Cruise hopes to have this year’s permit for a paid, driverless offer in San Francisco at the middle of the night. To be able to offer driverless services in California, they will need permits from California Public Utilities Commission.

Self-driving technology companies, which attracted billions in investment, now face the challenge of scaling up their technology after failing to meet their original targets.