New York abandons plan to legalize robotaxis as setback for Waymo

New York Gov. Kathy Hochul (D) dropped her proposal to allow robotaxi companies to roll out commercially in cities other than New York City, citing a lack of support among state lawmakers, Bloomberg reports today. The move is a blow to Waymo and other robotics companies that have seen New York, and New York City in particular, as a potential gold mine.

The plan, which Hochul unveiled last month as part of a state budget proposal, would allow limited deployment of robotaxi in cities other than the Big Apple — leaving it up to the mayor and City Council whether New York gets autonomous vehicles. But now that plan is DOA because support in the legislature never materialized.

“Based on conversations with stakeholders, including the Legislature, it was clear that there was no support for this proposal,” Sean Butler, a Hochul spokesman, said in a statement.

The news is a setback for Waymo, which has been eyeing New York, and NYC in particular, for years to potentially launch its robot taxi business. According to Politics, Waymo has spent at least $1.8 million since 2019 lobbying Hochula and state lawmakers, as well as city officials.

“While we are disappointed by the governor’s decision, we are committed to bringing our service to New York and will work with the state legislature to advance this matter,” Waymo spokesman Ethan Teicher said in a statement. “The way forward requires a collaborative approach that prioritizes transparency and public safety.”

Under current rules, autonomous vehicles are only allowed in New York with safety drivers keeping their hands on the wheel. State law originally required a police escort, but a renewal of the law a few years ago removed that language.

Automakers and tech companies testing AVs tend to flock to states with friendly regulations (like Arizona and Texas) or places more convenient for their headquarters (like California). New York is neither, but it represents one of the largest taxi markets in the world – making it a ripe target for robotaxis.

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