Alphabet Inc's (NASDAQ:GOOG) (NASDAQ:GOOGL) autonomous driving unit, Waymo, has announced plans to offer public driverless rides in Austin, Texas, later this year, directly targeting Tesla's home turf.

Public Launch in Los Angeles: Starting Thursday, Waymo will offer driverless rides to select members of the public in Los Angeles. The service, called Waymo One, will initially be free in a designated area and transition to paid service soon.

Expansion Plans: Waymo aims to permanently add riders from its 50,000-person waitlist and distribute temporary access codes at local events. In Austin, the company is currently testing autonomous rides with employees and plans a public launch later this year.

"We're excited to open Waymo One to the public in LA this week and Austin later this year!" Waymo Chief Product Officer Saswat Panigrahi wrote on X.

Tesla Competition: This move positions Waymo as a direct competitor to Tesla, headquartered in Austin and developing its own self-driving technology. Tesla CEO Elon Musk previously claimed his car navigated Austin autonomously during a busy festival.

He has also reportedly bought 6,000 acres of land just outside of Austin where he plans to build his own town and add thousands of jobs to the area.

Market Landscape: By the end of the year, Waymo sees itself offering rides across the cities of Los Angeles, Phoenix, San Francisco, and Austin, while the services of its rival Cruise remain suspended across the U.S. following an accident that involved a pedestrian in early October.

Cruise parent General Motors said in January that the company would relaunch Cruise but did not provide a roadmap.

Read More: 'We Are Back:' Tesla CEO Elon Musk Visits Berlin Gigafactory With Son As Production Resumes After Arson Attack

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