Tesla launches dynamic Robotaxi fare pricing in Austin; lower rates for shorter rides

Tesla launched the Robotaxi service in June with a flat rate of $4.20 per ride, which increased to $6.90 after the company expanded the covered area. A new app update now allows riders to pay based on the distance travelled.

The dynamic pricing is a feature of the 25.7.10 version of the Robotaxi app, following Tesla's extension of the geofenced area to downtown Austin, the University of Texas, and other neighborhoods. Tesla added other minor fixes and improvements.

According to a chart compiled by X user @Tslachan, users of the driverless taxis can now pay as low as $2.10 for about 0.9 miles. Distances between 3 and 9 miles could cost up to $12.04.

Offering dynamic prices brings Tesla's Robotaxi closer to both legacy taxis and traditional ride-hailing services such as Uber and Lyft. It will also give users who are not going far an incentive to try out the service.

Other changes Tesla has made to the Robotaxi app since launch include allowing users to edit their destinations after booking and guiding users from their current position to their pickup point.

Tesla is expected to launch Robotaxi in the Bay Area in California and Arizona. However, the company will be required to engage safety drivers directly behind the steering wheel in California, at least initially.