Ubers self-driving car fleet quits California and heads to Arizona
Regulators often get in the way, sometimes rightly, of the testing and adoption of new technologies but companies often find a way round them.
Key takeaways
- Uber began testing a fleet of 16 self driving Volvo SUVs in San Francisco earlier this month.
- A week later, California’s Department of Motor Vehicles (DMV) revoked all 16 registrations, insisting that a special permit was required and that Uber must publicly report statistics from their R&D program.
- Arizona has gained 83 companies and more than 12,000 jobs due to California’s meddling bureaucracy, including investments by Google, Lucid Motors, and McKesson Corporation.
Cite or link to this article
Griffin, M. (2016) 'Ubers self-driving car fleet quits California and heads to Arizona', 311 Institute, 27 December. Available at: https://www.311institute.com/uber-flees-california-and-heads-to-arizona/ (Accessed: 1 October 2026).
Silicon Valley is known as the home of tech innovation so it’s no surprise Uber chose San Francisco as the test site for their ride sharing app back in 2011 but now it looks like the Golden State wants to tangle their future research in red tape. And now one states loss is another state's gain.
Uber began testing a fleet of 16 self driving Volvo SUVs in San Francisco earlier this month. A week later, California’s Department of Motor Vehicles (DMV) revoked all 16 registrations, insisting that a special permit was required and that Uber must publicly report statistics from their R&D program. Not wanting to invest millions in research to benefit their competitors, Uber sought out a different state. And they found one, Arizona.
“California may not want you, but we do,” said Arizona Governor Doug Ducey. So, on Thursday, the company shipped all their self-driving vehicles to the state capitol in Phoenix to be met personally by Ducey in a public celebration.
“Arizona welcomes Uber self-driving cars with open arms and wide open roads,” said Ducey, "while California puts the brakes on innovation and change with more bureaucracy and more regulation, Arizona is paving the way for new technology and new businesses. In 2015, I signed an executive order supporting the testing and operation of self-driving cars in Arizona with an emphasis on innovation, economic growth, and most importantly, public safety. This is about economic development, but it’s also about changing the way we live and work. Arizona is proud to be open for business.”
This is far from the first time a business has fled California's "suffocating" regulatory climate. Arizona has gained 83 companies and more than 12,000 jobs due to California’s meddling bureaucracy, including investments by Google, Lucid Motors, and McKesson Corporation. Add in Texas, Nevada, and other red states, and you have an Atlas Shrugged-style exodus.
California’s losses and the rest of the southwest’s gains show what happens when government gets out of the way, and what happens when it doesn’t.
What this means for your organisation
Disclosure drove the move.
The state required a special permit and public reporting of statistics from the research programme, which the firm did not want to provide to competitors. Transparency rules carry a commercial cost. Policy makers should know what their reporting demands do to location choices.
Welcome is a competitive offer.
Arizona had signed an order supporting the testing and operation of self-driving cars, and its governor framed the arrival as economic development. Being permissive was positioned as an advantage. Technology leaders should map which jurisdictions compete for their activity.
Relocation is already a pattern.
The state is reported to have gained dozens of companies and more than 12,000 jobs from businesses leaving a stricter regime, alongside other states doing the same. This was not a one-off. Leaders should expect mobile activities to keep moving towards the most permissive regime.
Three questions for your next leadership meeting
- What would mandatory disclosure cost us commercially?
- Which jurisdictions actively compete for our testing?
- Which of our activities are mobile enough to relocate?
The trends and technologies behind this story
From the 311 Starburst, the 311 Strategic Intelligence Unit’s map of the technologies and trends shaping the next 50 years.
Analysis by the 311 Strategic Intelligence Unit, from Matthew Griffin’s article and 311 data. First published on Fanatical Futurist.
FAQ
Why does this matter?
Regulators often get in the way, sometimes rightly, of the testing and adoption of new technologies but companies often find a way round them.
About the author
Matthew Griffin Founder, President and Futurist, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 17-time best selling author of the "Codex of the Future" series, Matthew is the Founder, President and Futurist of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
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Source: first published by the 311 Institute on 27 December 2016. Cite as: Griffin, M. (2016). Ubers self-driving car fleet quits California and heads to Arizona. 311 Institute. https://www.311institute.com/uber-flees-california-and-heads-to-arizona/
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