In the escalating race for dominance in autonomous ride-hailing, former Waymo CEO John Krafcik has thrown a pointed jab at Tesla’s latest foray into the market. Speaking to Business Insider, Krafcik dismissed Tesla’s Model Y-based robotaxi service in San Francisco as anything but truly driverless, emphasizing that the presence of a human employee inside the vehicle undermines its claim to full autonomy. “It’s (rather obviously) not a robotaxi if there’s an employee inside the car,” he stated, highlighting a fundamental distinction between Tesla’s approach and the fully unmanned operations pioneered by companies like Waymo.

This critique comes amid Tesla’s aggressive push to expand its robotaxi fleet, with internal memos revealing plans for a Bay Area rollout that could disrupt traditional players like Uber. As of mid-2025, Tesla has begun operating these vehicles with safety drivers, a move that Krafcik argues merely replicates the supervised autonomy already common in ride-sharing, rather than advancing the field toward genuine independence.

Krafcik’s Legacy and the Autonomy Divide

Krafcik, who led Waymo from 2015 to 2021 and now serves on Rivian’s board, brings decades of automotive expertise to his assessment. Under his tenure, Waymo transitioned from Google’s self-driving project to a commercial service offering revenue-generating, fully autonomous rides in cities like Phoenix and Los Angeles. In contrast, Krafcik noted in the same Business Insider interview that Tesla has yet to demonstrate a single unsupervised, revenue-producing autonomous trip, a gap he sees as critical in the high-stakes world of urban mobility.

Industry observers echo this sentiment, pointing to regulatory and technical hurdles Tesla faces. Reports from WebProNews detail how Waymo maintains a lead with its sensor-heavy vehicles operating without humans in multiple markets, while Tesla relies on camera-based systems that critics argue fall short in complex scenarios.

Tesla’s Ambitious Rollout and Market Response

Tesla’s San Francisco launch, accelerated from initial timelines, positions the company to challenge Uber directly in one of the nation’s busiest ride-hailing hubs. According to Business Insider, the service uses Model Y vehicles equipped with Full Self-Driving software, but with employees monitoring for safety—a setup that has drawn skepticism from veterans like Krafcik, who likened it to “re-creating today’s Bay Area Uber experience.”

Public sentiment on platforms like X reflects a mix of excitement and doubt, with posts highlighting Tesla’s rapid deployments in Austin and San Francisco as bold but potentially premature. Meanwhile, Waymo’s expansion plans, including a 2026 rollout in Dallas as reported by Reuters, underscore its methodical scaling, contrasting Tesla’s showier tactics.

Implications for Uber and Broader Competition

The rivalry intensifies pressure on Uber, which faces existential threats from both Tesla and Waymo. American Bazaar Online notes Uber’s exploratory moves, such as potential collaborations with former CEO Travis Kalanick to acquire autonomous tech firms, as defenses against this wave. Krafcik’s comments amplify concerns that Tesla’s model, while innovative, may prioritize spectacle over substance, potentially delaying widespread adoption.

For industry insiders, this debate underscores deeper questions about safety, scalability, and regulation. Tesla’s cost advantages—avoiding expensive lidar sensors—could eventually prevail, but as Krafcik warns, true robotaxis demand uncompromised autonomy to transform transportation.

Looking Ahead in Autonomous Innovation

As 2025 progresses, Tesla’s San Francisco operations will serve as a litmus test. If the company transitions to fully unmanned rides, it could validate Elon Musk’s vision and erode Waymo’s edge. Yet, Krafcik’s pointed critique, rooted in years of hands-on experience, reminds stakeholders that hype alone won’t suffice in an arena where lives and billions in revenue hang in the balance.

Analysts predict regulatory scrutiny will shape outcomes, with California authorities closely monitoring Tesla’s supervised fleets. Ultimately, the path forward hinges on proving reliability without human intervention, a benchmark Waymo has met and Tesla strives to reach.