New York just slammed the brakes on autonomous vehicles. Governor Kathy Hochul pulled her proposal to legalize commercial robotaxi operations across the state, citing a lack of legislative support, according to Bloomberg. The abrupt reversal deals a major blow to Waymo and other self-driving companies that viewed New York - particularly Manhattan - as one of the most lucrative untapped markets in the country. The decision leaves the autonomous vehicle industry scrambling to salvage its expansion plans in America's fourth-largest state.
The robotaxi industry just hit a concrete wall in New York. Governor Kathy Hochul's decision to scrap her autonomous vehicle proposal marks one of the most significant regulatory setbacks for companies like Waymo since the technology began rolling out commercially in cities like San Francisco and Phoenix.
According to Bloomberg's reporting, Hochul cited insufficient support among state legislators as the reason for pulling the plug. The governor's office hasn't yet responded to requests for additional comment, but the move suggests deeper concerns about public safety, union opposition, and the political risks of backing unproven technology.
The proposal, which Hochul unveiled last month as part of her 2026 budget package, would have created a framework for limited robotaxi deployment in upstate cities like Buffalo and Rochester. But it took a more cautious approach to New York City itself, leaving the final decision on autonomous vehicles to Mayor Eric Adams and the City Council. That split structure apparently wasn't enough to win over skeptical lawmakers.
For Waymo, the timing couldn't be worse. The Alphabet-owned company has been aggressively expanding its robotaxi service after raising its valuation to $45 billion in a recent funding round. The company already operates commercial services in San Francisco, Phoenix, and Los Angeles, racking up over 4 million paid trips. New York City, with its density, transit infrastructure, and sky-high ride-hail prices, represented the holy grail for autonomous vehicle economics.
