New York hits the brakes on robotaxi expansion plan

New York governor kills robotaxi legalization plan

New York Governor Kathy Hochul has withdrawn a proposal that would have legalized robotaxis across the state. The plan, part of her broader budget, was pulled after it became clear there was insufficient support in the legislature.

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

A major setback for Waymo's expansion

The withdrawal is a significant blow to Waymo, which has long sought to deploy its commercial robotaxi service in New York. The company currently operates paid services in several other major U.S. cities.

“We hear from thousands of New Yorkers who have experienced Waymo in other cities and want access to it at home,” Waymo said in a statement. “While we are disappointed by the Governor’s decision, we’re committed to bringing our service to New York.”

The law blocking driverless cars

The core legal barrier is a state law requiring a driver to keep one hand on the steering wheel at all times. Hochul's proposal would have amended this rule, which effectively bans fully driverless vehicles.

Even if passed, the proposal had strict limitations. It would not have allowed for-hire robotaxi services in any city with over a million people, a rule excluding New York City.

Companies would have also faced high barriers to entry, including:

• A $1 million application fee
• Proof of financial security of at least $5 million
• Approval from the state's transportation commissioner
• A demonstration of local support in the proposed pilot area

New York's restrictive pilot program remains

With the new proposal dead, New York's existing autonomous vehicle pilot program stays in effect. This program is far more restrictive.

It allows companies to seek an exemption to the "one-hand" rule for testing and development, but it explicitly prohibits launching commercial robotaxi services. Waymo is currently testing in New York City under this framework.

The company has a permit to test up to eight vehicles with safety drivers in Manhattan and downtown Brooklyn. That permit expires on March 31.

Waymo's current operations and goals

Despite the New York setback, Waymo continues to expand elsewhere. The company operates commercial robotaxi services in six major metropolitan areas:

• Atlanta
• Austin
• Los Angeles
• Miami
• Phoenix
• San Francisco Bay Area

Waymo says it provides more than 400,000 paid rides every week across its network. The company has stated it is targeting 1 million weekly rides by the end of this year.