Waymo autonomous taxis turns onto Post Street in San Francisco, California, US, on Wednesday, Dec. 17, 2025.
David Paul Morris | Bloomberg | Getty Images
New York Gov. Kathy Hochul has pulled a proposal that would have allowed commercial robotaxi services, like Alphabet‘s Waymo, to start in some parts of the state, according to her office.
“Based on conversations with stakeholders, including the legislature, it was clear that the support was not there to advance this proposal,” Sean Butler, a spokesperson for the governor, said in a statement.
Hochul’s reversal represents a blow to robotaxi operators like Waymo, which plans to expand its ride-hailing service to several new cities this year.
A Waymo spokesperson told CNBC in a statement that it was “disappointed” by Hochul’s decision.
The decision will not affect Waymo’s testing in New York City.
In August, the company received its first permit from the New York Department of Transportation to start testing in the city, an approval made under New York City Mayor Zohran Mamdani’s predecessor, Eric Adams.
Waymo began testing a handful of AVs in Manhattan and downtown Brooklyn with human safety drivers on board under a permit that was extended through March.
Hochul introduced the proposal during her State of the State address last month. It outlined plans to allow for limited deployment of commercial robotaxis in the state, notably outside of New York City, a huge potential source of rider demand.
Companies interested in piloting their services would be required to submit applications that “demonstrate local support for AV deployment and adherence to the highest possible safety standards,” Hochul said in her address.
The proposal drew scrutiny from labor unions, rideshare drivers and transit workers, who raised concerns about safety risks and potential job losses from robotaxis entering the New York market. It also faced the prospect of pushback from Mamdani, who has been a staunch advocate for taxi drivers.
Bhairavi Desai, executive director of the Taxi Workers Alliance, applauded Hochul’s move and called it a “sensible decision.” The group represents more than 28,000 yellow cab, Uber and Lyft drivers in New York City.
“Waymo thinks by targeting Buffalo and Rochester it can divide and conquer our driver-led movement,” Desai said in a statement. “But, once again, billionaire tech bosses underestimate workers at their own peril.”
Waymo plans to start its commercial driverless ride-hailing service in several new cities this year, including Dallas, Denver, Nashville, Orlando, and Washington D.C. It also plans to expand to London, its first international market.
“We’re committed to bringing our service to New York and will work with the State Legislature to advance this issue,” the Waymo spokesperson said. “The path forward requires a collaborative approach that prioritizes transparency and public safety.”
The company currently offers 400,000 rides per week across its markets in the U.S., including the San Francisco Bay Area, Los Angeles, Phoenix, Austin, Atlanta, and Miami.
Potential rivals, including Tesla and Amazon-owned Zoox, are testing their driverless systems in the U.S. but do not yet offer driverless ride-hailing services widely. Chinese robotaxi companies, such as Baidu-owned Apollo Go and WeRide, have been expanding abroad at a faster clip than Waymo.
The Alphabet-owned company reported safety incidents involving its robotaxis in recent weeks, including one involving a minor.
One of its driverless vehicles struck a child near an elementary school in Santa Monica, California, last month, triggering an investigation by the National Highway Traffic Safety Administration.
In a separate incident last month in Los Angeles, a Waymo Ojai vehicle operated in manual mode by a human sped through a one-way residential street near Dodger Stadium.