Global autonomous driving battle escalates across the board! Alphabet (GOOGL.US)-backed Waymo teams up with Japanese leader to seize Tokyo

As the U.S. market leader continues its global expansion, Alphabet (GOOGL.US)-backed Waymo plans to bring its robotaxis to Japan next year. Waymo said Tuesday it will partner with Japanese taxi companies Go Inc. and Nihon Kotsu Co. to launch a fully autonomous driving service in Tokyo in 2027. The two companies expect to start with a small fleet and gradually expand to 100 vehicles. Shares of Go, which operates Japan's largest taxi-hailing app, rose as much as 9.7% on Tuesday. The stock has gained more than 40% since its initial public offering in June. Waymo has been expanding rapidly in the U.S. and is now setting its sights on overseas markets the company is also preparing an autonomous driving service in London. Waymo has been testing in Tokyo for the past year, and its autonomous service will be the first of its kind on Japanese public roads. In a blog post, Waymo said the robotaxis will "complement Tokyo's world-renowned transportation network while helping Japan address its aging population and mitigate future labor shortages." Passengers will be able to hail rides through the Go and Waymo apps. In Japan, autonomous driving has long been seen as a pipe dream the streets there are narrow and crowded, and regulations are notoriously strict. But over the past few months, companies have begun pushing to open up the landscape. Earlier this year, U.S. autonomous driving startup Nuro Inc. began testing in Tokyo, its first overseas location following partnerships with Uber Technologies, Inc. and Lucid Group Inc. Nuro, backed by the likes of NVIDIA Corporation and Toyota Motor Corp. Sponsored ADR, aims to compete with Waymo and Amazon.com, Inc.'s Zoox. Waymo said its Japanese service still needs to obtain the necessary permits and licenses. Current Japanese regulations require a person to be in the driver's seat regardless of the vehicle's level of automation.