Human drivers win as New York Governor pulls the plug on statewide Robotaxi expansion
- Marijan Hassan - Tech Journalist
- 5 minutes ago
- 2 min read
In a major victory for traditional taxi and rideshare drivers, New York Governor Kathy Hochul officially withdrew a controversial proposal that would have paved the way for commercial robotaxis to operate across the entire state. The decision marks a significant retreat for the administration, which just last month had signaled a willingness to embrace autonomous vehicle (AV) expansion as a pillar of New York’s high-tech future.
The withdrawal comes after weeks of intense lobbying from driver unions and a stinging public opinion survey showing that nearly 60% of upstate residents were opposed to having driverless cars in their neighborhoods.
The stakeholder rebellion
The proposal, which was part of the Governor's 30-day budget amendments, would have allowed companies like Waymo and Zoox to apply for commercial permits in cities outside of New York City (which has its own distinct pilot program).
However, the political "support was just not there," according to a spokesperson for the Governor.
The New York Taxi Workers Alliance and the Independent Drivers Guild led the charge, arguing that the expansion would "decimate" the livelihoods of human drivers.
Moreover, a survey by the Siena Research Institute revealed a deep skepticism outside the Big Apple, with many residents citing safety concerns and the potential for "unpredictable" AI behavior on narrow, snow-prone upstate roads.
Waymo’s setback and NYC "island" status
The move is a direct blow to Alphabet-owned Waymo, which had hoped to use the upstate expansion as a springboard to dominate the broader New York market.
NYC still active
Importantly, this decision does not affect Waymo’s current testing in Manhattan and Brooklyn. However, that program remains restricted: vehicles must have a trained safety driver behind the wheel at all times, and the company is currently forbidden from charging passengers for rides.
A spokesperson stated the company is "disappointed" but remains committed to New York, promising to work with the State Legislature on a standalone bill later this year.
The "safety vs jobs" debate
The cancellation has split tech and safety advocates. The Chamber of Progress, a tech trade group, slammed the move, claiming it deprives New Yorkers of "proven protections" against human-error accidents. They pointed to data from cities like Phoenix and San Francisco where AVs have logged millions of miles with lower accident rates than human drivers.
On the other hand safe streets advocates argued that until a comprehensive study is done on how AVs interact with New York's unique infrastructure, and until the state develops a plan for "displaced workers", any expansion is premature.
