New York Governor Kathy Hochul has withdrawn a proposal that would have permitted commercial robotaxi operations in certain parts of the state, dealing a setback to companies such as Waymo that are seeking broader deployment.
“Based on conversations with stakeholders, including the legislature, it was clear that the support was not there to advance this proposal,” Sean Butler, a spokesperson for the governor, said in a statement.
The reversal complicates expansion plans for Waymo, the autonomous driving unit of Alphabet, which has been working to broaden its ride-hailing footprint across multiple U.S. cities this year.
The change does not impact Waymo’s current testing activities in New York City. In August, the company secured its first permit from the New York Department of Transportation to conduct testing within the city, approval granted during the administration of former Mayor Eric Adams.
Waymo has since deployed a limited number of autonomous vehicles in Manhattan and downtown Brooklyn, operating with human safety drivers onboard. The testing permit has been extended through March.
Hochul initially introduced the proposal during her State of the State address last month.
The plan would have enabled limited commercial deployment of robotaxis outside New York City, representing a significant opportunity for operators seeking access to new rider markets.
Under the framework she outlined, companies interested in launching pilot programs would have been required to submit applications that “demonstrate local support for AV deployment and adherence to the highest possible safety standards,” Hochul said in her address.
The proposal faced criticism from labor unions, rideshare drivers, and transit workers who expressed concerns regarding safety and potential job displacement. It also risked opposition from Mayor Zohran Mamdani, who has publicly supported taxi drivers.
Bhairavi Desai, executive director of the Taxi Workers Alliance, praised Hochul’s decision and described it as a “sensible decision.” The organization represents more than 28,000 yellow cab, Uber, and Lyft drivers in New York City.
“Waymo thinks by targeting Buffalo and Rochester it can divide and conquer our driver-led movement,” Desai said in a statement. “But, once again, billionaire tech bosses underestimate workers at their own peril.”
Waymo intends to launch commercial driverless ride-hailing services in additional U.S. cities this year, including Dallas, Denver, Nashville, Orlando, and Washington, D.C. The company also plans to enter London, marking its first international expansion.
“We’re committed to bringing our service to New York and will work with the State Legislature to advance this issue,” the Waymo spokesperson said. “The path forward requires a collaborative approach that prioritizes transparency and public safety.”
Waymo currently provides approximately 400,000 rides per week across U.S. markets including the San Francisco Bay Area, Los Angeles, Phoenix, Austin, Atlanta, and Miami.
Competing firms such as Tesla and Amazon-owned Zoox are testing autonomous systems in the United States but have not yet widely launched fully driverless ride-hailing services.
Meanwhile, Chinese companies including Baidu’s Apollo Go and WeRide have expanded internationally at a faster pace.
Waymo has also faced scrutiny following recent safety incidents. In one case, a driverless vehicle struck a child near an elementary school in Santa Monica, California, prompting an investigation by the National Highway Traffic Safety Administration.
In a separate incident in Los Angeles, a Waymo Ojai vehicle being operated in manual mode by a human driver reportedly drove the wrong way down a residential one-way street near Dodger Stadium.
