New York drops plan to legalize robotaxis in setback for Waymo

New York Governor Kathy Hochul (D) dropped her proposal to allow robotaxi companies to launch commercially in cities other than New York City, citing a lack of support among state legislators, Bloomberg reports today. The move is a blow to Waymo and other robotaxi companies who saw New York, and especially New York City, as a potential goldmine.

The plan, which was introduced by Hochul as part of the state’s budget proposal last month, would have allowed limited robotaxi deployment in cities other than the Big Apple — while leaving whether New York City would get autonomous vehicles up to the mayor and the City Council. But now that plan is DOA, as support in the legislature never materialized.

“Based on conversations with stakeholders, including in the legislature, it was clear that the support was not there to advance this proposal,” Sean Butler, a Hochul spokesperson, said in a statement.

The news is a setback for Waymo, which has been eyeing New York, and especially NYC, for years for the potential launch of its robotaxi business. According to Politico, Waymo spent at least $1.8 million since 2019 lobbying Hochul and state lawmakers, as well as city officials.

“While we are disappointed by the Governor’s decision, we’re committed to bringing our service to New York and will work with the State Legislature to advance this issue,” Waymo spokesperson Ethan Teicher said in a statement. “The path forward requires a collaborative approach that prioritizes transparency and public safety.”

Under its current rules, autonomous vehicles are only allowed in New York with safety drivers who keep their hands on the steering wheel. The state law originally required a police escort, but a renewal of the law several years ago removed that language.

Automakers and tech companies testing AVs tend to flock to states with friendlier regulations (like Arizona and Texas) or places that are more convenient to their headquarters (like California). New York is neither, but it does represent one of the biggest taxi markets in the world — and therefore is a ripe target for robotaxis.