The robotaxi industry's New York dreams just got pushed further away

• Waymo's New York robotaxi dreams are on hold as Gov. Kathy Hochul drops an uncrewed robotaxi proposal.
• The proposal would have allowed robotaxis to run outside NYC, with local government approval.
• The blow came days after Waymo raised $16 billion to fund plans to expand to 20 more cities.

The autonomous vehicle industry just faced a setback in New York.

New York Gov. Kathy Hochul dropped a proposal to allow robotaxi companies to operate commercially without human safety drivers in parts of the state outside New York City, dealing a blow not just to Waymo but also to its competitors eager to crack one of the world's largest taxi markets.

The proposal, which Hochul introduced last month as part of her budget plan, would have created a framework for limited robotaxi deployments elsewhere in the state while leaving any decision about New York City to the mayor and city council.

Based on the proposal, private companies like Waymo and Tesla would be able to operate their commercial robotaxis if they could obtain approval from local governments. On Thursday, the governor's office confirmed that the plan had been withdrawn after failing to gain legislative support.

The move is a blow to Waymo, which has eyed New York, especially New York City, for years as a potential growth market. Waymo is currently testing vehicles with safety drivers in New York City under a permit approved during former Mayor Eric Adams' administration, though that permit expires March 31. It is unclear if Mayor Zohran Mamdani will agree to renew the permit.

In a blog post on Monday, Waymo said it raised $16 billion in its most recent funding round, which valued the company at $126 billion. The investment would be used to finance the company's expansion to over 20 more cities, said Waymo.

According to state lobbying records, the Alphabet-owned company has been lobbying Hochul, state senators, state assembly members, as well as Blake Washington, who is the state's budget director, over the past six months. Other companies that are developing robotaxis don't have notable lobbying records specific to New York.

New York law allows autonomous vehicles only if a human safety driver keeps their hands on the steering wheel. Earlier versions of the law even required a police escort, but that provision was later removed.

Autonomous vehicle makers have struggled to gain a foothold in New York. Cruise shelved plans to test in Manhattan in 2017 before the company folded entirely, while Optimus Ride and Mobileye have run limited pilots. None has thus far managed to provide unsupervised commercial rides in the Big Apple.

There are other active bills that would allow robotaxis to run in the state if such plans could gain enough legislative support. Brian A. Cunningham, who represents the 43rd Assembly District in Central Brooklyn, has sponsored a bill that would allow a person or a company to operate a fully autonomous vehicle on the public roads without a human driver, "provided that the automated driving system is engaged and the vehicle meets certain conditions."

The bill in question was first referred to the Committee of Transportation on January 7. Based on state lobbying records, Waymo lobbyists met with Cunningham between November and December 2025.

Waymo did not immediately respond to a request for comment.