New York pulls back on robotaxi permit, throwing a wrench in Waymo’s plans
By Arthur Berg
New York Governor Kathy Hochul has withdrawn a proposal introduced in January that would have allowed commercial robotaxi services in several parts of the state outside New York City – delivering a major setback to Waymo, which just weeks earlier closed a massive $16 billion funding round valuing the company at $110 billion. The proposal had given companies the green light to seek local approval for limited autonomous vehicle fleets; now that path is closed.
Why New York reversed its stance on robotaxis
The official reason revolves around political and social concerns: the state has powerful unions and a city government in New York City that remains skeptical of rapid autonomous vehicle deployment due to worries about job losses and safety. Lawmakers weren’t ready to expand commercial testing beyond tightly controlled pilot programs; the proposal, part of the state’s executive budget, was quietly dropped.
This isn’t just a blow to Waymo as a juggernaut with deep pockets and sky-high valuations. For the AV industry, it’s a signal that money and technology alone won’t get you on the road when local politics and labor forces perceive the risks as too great. Waymo’s experience in Phoenix shows commercial robotaxi services are possible, but scaling up demands political consensus – something New York currently lacks.
- The proposal was introduced in January as part of the state executive budget.
- Waymo secured $16 billion in funding just weeks before the rollback, reaching a $110 billion valuation.
- Competitors like Cruise and Motional are also facing local bans and restrictions.
Now, Waymo will likely have to double down on lobbying efforts and union negotiations or pivot to other states and cities with friendlier regulations. In the coming months, it will become clear whether autonomous driving tech can overcome political resistance or if the industry will settle into a “five-million-scale” pattern – small, cautious pilots instead of broad commercial launches.
