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They're going for lowest cost per mile. Most rides have 2 or less people, this will address that huge market in a very efficient way.

Why is that market not served by a 4 person self driving car?

Or by a Waymo you can already use in a visit to SF?

Because roads exist outside of SF and Waymo should have competition.

The mentionned the show that they will have autonomous versions of 3 and Y first.