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Waymo explores options to leave Uber robotaxi deal
Autonomous vehicle firm has notified Uber that it plans to operate independently in Austin and Atlanta in January 2028
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Key Takeaways:
- Waymo is exploring ending its robotaxi partnership with Uber and plans to operate independently in Austin and Atlanta starting in January 2028, the Financial Times reported.
- Uber currently provides Waymo autonomous rides in those two markets and recently wound down the service in Phoenix.
- Uber shares fell as much as 4.8% after the report.
Alphabet Inc.’s Waymo is exploring options to exit its robotaxi partnership with Uber Technologies Inc., the latest relationship twist between two companies that have functioned as both rivals and partners.
Uber currently offers rides in autonomous Waymo vehicles on its platform in two U.S. cities: Austin and Atlanta. An Uber spokesperson said Waymo has given notice that it plans to launch service through its own app in those cities in January 2028 “alongside their existing deployment with Uber.” This “would end Waymo’s exclusivity in Austin and Atlanta and allow us to launch with other AV providers in those cities, which we will be prepared to do,” the spokesperson added.
The current fleet of Waymo vehicles will remain on Uber’s platform through at least May 2028, the duration of the current contract, Uber said. The Financial Times reported earlier that Waymo was exploring options for exiting the partnership.
Shares of Uber fell as much as 4.9% to $65.56 in New York. Alphabet’s stock was up less than 1%. A representative for Waymo did not immediately respond to requests for comment.
The rift is a major setback for Uber, which has been developing partnerships with Waymo and fleet managers and investing in other robotaxi companies in the hopes that it can one day be the go-to aggregator for both driverless and human-operated rides. But Waymo, the leading robotaxi provider in the U.S., also competes with Uber in key rideshare markets such as San Francisco and Los Angeles with its consumer app.
The absence of new developments from Uber and Waymo’s multiyear partnership has helped fuel anxiety about their relationship for months. Since launching the Atlanta service last June, Waymo has not announced new cities where its vehicles will be available on the Uber app. Instead, the Alphabet unit has forged ahead with the stand-alone Waymo app and has launched in six more cities outside San Francisco and L.A.
With almost every new Waymo announcement without Uber, Uber’s stock has taken a hit on fears that Waymo’s growth will eventually erode the ride-hail company’s business, which only became profitable for the full year two years ago. Even as Uber has announced a drumbeat of partnerships with other driverless car companies on planned service in the U.S., Middle East and Europe, Wall Street has remained unconvinced. The stock has fallen almost 20% so far this year.
