The robotaxi industry's New York dreams just got pushed further away
Business Insider
February 20, 2026
AI-Generated Deep Dive Summary
Waymo’s ambitious plans to expand its robotaxi service in New York have hit a roadblock after Governor Kathy Hochul withdrew her proposal to legalize unsupervised autonomous vehicles outside New York City. The move deals a significant blow to the autonomous vehicle industry, particularly Waymo, which had been eyeing New York as a key growth market. The proposal, introduced last month as part of Hochul’s budget plan, would have allowed companies like Waymo and Tesla to operate commercial robotaxis in other parts of the state with local government approval. However, after failing to gain legislative support, the plan was officially dropped.
Waymo had raised $16 billion in its latest funding round, valuing the company at $126 billion, with plans to expand into over 20 more cities globally. New York City, in particular, has been a target for Waymo, which is currently testing vehicles with safety drivers under a permit approved during former Mayor Eric Adams’ administration. However, this permit expires on March 31, and it remains uncertain whether the current mayor, Zohran Mamdani, will renew it. Despite significant lobbying efforts by Waymo over the past six months, including meetings with Hochul, state senators, and assembly members, the proposal fell through.
The setback highlights the challenges autonomous vehicle companies face in New York, where strict laws require human safety drivers to keep their hands on the steering wheel. This stringent regulation has already forced other companies like Cruise to shelve plans for testing in Manhattan, while others like Optimus Ride and Mobileye have only conducted limited pilots. The industry’s struggle to gain a foothold in one of the world’s largest taxi markets underscores the high stakes and regulatory hurdles involved in deploying autonomous vehicles.
While Hochul’s proposal is no longer viable, other bills could still pave the way for robotaxis in New York if they gain enough legislative support. For instance, Assemblymember Brian A. Cunningham has introduced a bill that would allow fully autonomous vehicles to operate without human drivers, provided certain conditions are met. This bill was referred to the Committee on Transportation earlier this year and remains under consideration.
Overall, Waymo’s setback in New York underscores the ongoing challenges faced by autonomous vehicle companies as they navigate complex regulatory landscapes. While the industry continues to push for expansion, the lack of progress in New York highlights the need for more flexible policies to support innovation and growth in this rapidly evolving sector.
Verticals
businessfinance
Originally published on Business Insider on 2/20/2026