On Wednesday, December 17, 2025, a Waymo self-driving taxi pulls into Post Street in San Francisco, California, USA.
David Paul Morris | Bloomberg | Getty Images
New York Governor Kathy Hochul has withdrawn a proposal to allow commercial robotaxi services, including: alphabetHis office says Waymo will begin rolling out in some parts of the state.
“Based on our conversations with stakeholders, including the Legislature, it was clear there was no support for this proposal to move forward,” Sean Butler, the governor’s press secretary, said in a statement.
Hochul’s reversal is a blow to robotaxi operators like Waymo, which plans to expand its ride-hailing service to multiple new cities this year.
A Waymo spokesperson told CNBC in a statement that the company was “disappointed” by Hochul’s decision.
The decision does not affect Waymo’s testing in New York City.
In August, the company received its first permit from the New York City Department of Transportation to begin testing in the city, which was approved under New York City Mayor Zoran Mamdani’s predecessor, Eric Adams.
Waymo has begun testing several AVs with human safety drivers in downtown Manhattan and Brooklyn under a permit extended through March.
Hochul introduced this proposal in his State of the Union address last month. The state has outlined plans to allow limited deployment of commercial robotaxis, especially outside of New York City, which is a huge potential source of passenger demand.
In his speech, Hochul said companies interested in piloting their services will need to submit an application “demonstrating local support for AV deployment and compliance with the highest possible safety standards.”
The proposal drew scrutiny from labor unions, rideshare drivers and transit workers who expressed concerns about the safety risks and potential job losses of robotaxis entering the New York market. It also faced a potential backlash from Mamdani, an advocate for taxi drivers.
Bhairavi Desai, executive director of the Taxi Workers’ Union, praised Hochul’s move, calling it a “wise decision”. The group represents over 28,000 yellow cabs; Uber and lift New York City Driver.
“Waymo believes it can divide and conquer the driver-led movement by targeting Buffalo and Rochester,” Desai said in a statement. “Yet, once again, billionaire technology company leaders are underestimating their employees at their peril.”
Waymo plans to launch commercial driverless ride-hailing services in several new cities this year, including Dallas, Denver, Nashville, Orlando and Washington, D.C., with plans to expand into London, its first international market.
“We are committed to serving New York and will work with the state Legislature to advance this issue,” a Waymo spokesperson said. “Moving forward requires a collaborative approach that prioritizes transparency and public safety.”
The company currently offers 400,000 rides per week across U.S. markets including the San Francisco Bay Area, Los Angeles, Phoenix, Austin, Atlanta and Miami.
As a potential rival, tesla and AmazonZoox, owned by , is testing unmanned systems in the U.S., but its driverless ride-hailing service isn’t widely available yet. Chinese robotaxi companies etc. BaiduApollo Go and WeRide, both owned by , are expanding overseas at a faster pace than Waymo.
The Alphabet-owned company has reported safety incidents involving robot taxis involving minors in recent weeks.
One of the company’s driverless cars crashed into a child near an elementary school in Santa Monica, California, last month, sparking an investigation by the National Highway Traffic Safety Administration.
In another incident in Los Angeles last month, a Waymo Ojai vehicle operated by a human in manual mode was driven at high speeds through a one-way residential street near Dodger Stadium.
