SAN FRANCISCO, Aug. 17 -- California has given Waymo permission to operate autonomous robotaxis across more of the state, approving the Alphabet-owned company's bid to expand its driverless ride-hailing service into Sacramento and San Diego while also authorizing a significant scale-up in the Bay Area and Los Angeles markets where it already operates.

The California Public Utilities Commission granted the expansion Saturday, handing Waymo the largest single regulatory green light in the history of autonomous vehicle deployment in the United States. The company had already secured authorization from the California Department of Motor Vehicles to deploy driverless vehicles statewide, but CPUC approval is the separate commercial licensing s...