Waymo Eyes Uber Exit as Robotaxi Rivalry Heats Up: Report

Alphabet‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) Waymo is reportedly exploring an exit from its Uber (NYSE:UBER) partnership, notifying the ride-hailing company it plans to enter Austin and Atlanta independently once their contract expires in January 2028.

Contract Notice Sparks Uncertainty

Uber said it will continue offering Waymo rides in both markets until the deal lapses in May 2028, the Financial Times reported on Friday, citing sources. The companies already parted ways in Phoenix in May, with Uber reportedly seeking a new robotaxi partner there.

The two companies are also lobbying for competing state policies, according to the report. Uber is pushing for “hybrid networks” that would require human drivers to handle most rides, while Waymo backs high permitting costs that could limit smaller AV operators.

Uber and Waymo did not immediately respond to Benzinga‘s requests for comment.

Lobbying Battle Adds Pressure

The partners, who have worked together since 2023, have blamed each other over safety concerns and service problems. Uber executives have publicly raised doubts about the reliability of autonomous vehicles. CEO Dara Khosrowshahi said in February that self-driving vehicles are still “far from capable” of meeting customer expectations.

Waymo now operates more than 3,800 vehicles across 10 cities after raising $16 billion in February at a valuation of $126 billion.

Stock Market Performance

According to Benzinga Pro data, GOOGL closed Friday’s session at $319.74, up 0.65%, while UBER closed at $65.94, down 4.31%.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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