New York Governor Kathy Hochul scraps proposal to expand robotaxi service beyond New York City, dealing a setback to Waymo, after abruptly withdrawing a plan that would have opened the door for commercial autonomous ride-hailing services across several regions in the state.
According to Hochul’s office, the decision came after significant discussions with lawmakers and other stakeholders. “It became clear that there wasn’t enough support to move this proposal forward,” said Sean Butler, a spokesperson for the governor.
A Major Setback for Waymo’s Expansion Strategy
Hochul’s reversal marks an unexpected obstacle for robotaxi operators — particularly Alphabet-owned Waymo — which had planned to roll out its commercial driverless ride-hailing service in multiple new cities this year. In response, the company expressed “disappointment” with the governor’s decision but noted that its ongoing testing operations within New York City remain unaffected.
Waymo received its first testing permit from the New York Department of Transportation in August and has since deployed a small fleet of autonomous vehicles with human safety drivers in Manhattan and downtown Brooklyn. These testing permissions were initially granted under former Eric Adams before the transition to current Zohran Mamdani, who is known for strong pro-taxi advocacy.
The Proposal and the Growing Backlash
Hochul first introduced the robotaxi proposal during her annual State of the State address, pitching it as a controlled pilot that would allow limited deployment of commercial robotaxis outside New York City — a region with huge untapped passenger demand. Companies seeking approval would have needed to prove local backing and meet strict safety benchmarks.
However, the plan quickly drew strong criticism from labor unions, taxi drivers, rideshare groups, and transit workers who argued that autonomous vehicles could threaten jobs and put public safety at risk. Mamdani, long a vocal defender of taxi workers, was also expected to oppose any rapid rollout.
Bhairavi Desai, executive director of the New York Taxi Workers Alliance, praised Hochul’s reversal, calling it “a sensible decision.” Representing more than 28,000 drivers across yellow cab, Uber, and Lyft platforms, Desai said Waymo misjudged workers’ unity. “Billionaire tech bosses underestimate workers at their own peril,” she insisted.
Waymo Pushes Forward Nationally and Internationally
Despite the setback in New York, Waymo continues its nationwide expansion. The company plans to launch its commercial driverless service across cities such as Dallas, Denver, Nashville, Orlando, and Washington, D.C. this year. It is also preparing for its first overseas market: London.
“We remain committed to serving New York and hope to work with state lawmakers to move this forward,” the company said, emphasizing the importance of transparency and safety in any future legislation.
Waymo currently provides around 400,000 weekly rides across several U.S. cities, including the San Francisco Bay Area, Los Angeles, Phoenix, Austin, Atlanta, and Miami.
Rivals such as Tesla and Amazon-owned Zoox are also deep in testing phases but have not achieved the same level of commercial rollout. Chinese competitors, including Baidu-owned Apollo Go and WeRide, are expanding internationally at an even faster pace.
Safety Concerns Add Pressure
Waymo is also grappling with recent safety incidents. In one case, a driverless vehicle struck a child near a Santa Monica elementary school, prompting an investigation by the National Highway Traffic Safety Administration. Another incident involved a Waymo vehicle operating in manual mode that sped the wrong way through a residential street near Dodger Stadium.
These events have heightened scrutiny around autonomous vehicle safety — a key concern for lawmakers and unions opposing rapid deployment.
