Investing.com -- Tesla has applied for approval to operate a ride-hailing service in California, a move that could position the company alongside Uber (NYSE: UBER ), Lyft (NASDAQ: LYFT ), and Waymo in the competitive market, according to a report from Bloomberg on Thursday.

The electric vehicle maker reportedly submitted an application late last year for a transportation charter-party carrier permit from the California Public Utilities Commission, a classification that would allow Tesla (NASDAQ: TSLA ) to own and manage its fleet.

Bloomberg said the application suggests Tesla is preparing to launch its long-promised ride-hailing business, potentially creating a new revenue stream as its core vehicle sales slow.

CEO Elon Musk has indicated that Tesla aims to roll out a driverless ride-hailing service in Austin, Texas, in June and expand to California by the end of the year, though details remain sparse, said Bloomberg.

While Musk has emphasized Tesla’s focus on autonomous driving, regulatory filings hint that the company may initially rely on human drivers.

The report states that in discussions with California officials, Tesla addressed matters related to driver’s licenses and drug testing, suggesting that fully autonomous operations are not yet imminent.

Tesla’s approach is said to differ from Uber and Lyft, which allow drivers to use their personal vehicles.

The company is applying for the same permit as Waymo, Alphabet’s (NASDAQ: GOOGL ) robotaxi unit. However, Tesla has yet to obtain or apply for a driverless testing or deployment permit in California, according to the state’s Department of Motor Vehicles, Bloomberg reported.