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San Jose says permits — not contracts — will govern delivery robots; companies must carry insurance and indemnify the city
Summary
DOT clarified the city will issue permits (not contracts), require high insurance levels and indemnification, use mobility-data reporting for automated infractions, and retain the ability to revoke permits based on pilot results.
City staff clarified that the upcoming program will be permit-based rather than a city contract, meaning robot operators retain operational responsibility and the city will set permit conditions including insurance and indemnification.
"The city is not contracting these services ... we are requiring, high levels of insurance, for the companies to be able to get a permit," Ramses Madhu said. He added that the city will require indemnification in permit terms and can monitor infractions using mobility-data reporting under an Open Mobility Foundation mobility-data specification to flag violations without requiring police involvement.
Staff said revocation, fines and potential non-renewal would depend on the pilot’s findings; they noted experience revoking shared-micromobility permits in the past. The pilot is intended to provide evidence for council deliberation on whether to continue or modify the program.
