Well, it looks like the future of robotaxis in New York just got a bit more... contained. New York Governor Kathy Hochul has reportedly pulled the plug on a proposal that would have allowed autonomous vehicles to operate in other parts of the state outside of New York City. So, for now, if you want a driverless ride in the Empire State, you're sticking to the five boroughs.
This is a bit of a reversal. The Governor had hinted at this expansion in a State of the State document just last month. The proposal wasn't a free-for-all; it outlined that any autonomous vehicle (AV) company wanting to expand beyond NYC would have been "required to submit applications that demonstrate local support for AV deployment and adherence to the highest possible safety standards." So, it was a plan with guardrails, but now it's a plan that's been shelved. Governor Hochul's office didn't immediately respond to a request for comment.
Why This Matters for the Big Players
This regulatory U-turn isn't happening in a vacuum. It comes at a time when major players are making moves in the city. Alphabet's (GOOGL) Waymo, for instance, began testing its robotaxi service in the Big Apple last year. That rollout wasn't exactly met with open arms by everyone; local taxi drivers have been vocal, arguing that the service poses a threat to their livelihoods.
And then there's Tesla (TSLA). The Elon Musk-led automaker had posted a job listing looking for a test driver to help conduct trials for its robotaxi in New York City, offering up to $33 an hour to the right candidate. That listing now reads a little differently in light of this news. Neither Waymo nor Tesla immediately responded to requests for comment.
For Waymo, this could be a meaningful speed bump. The company has outlined ambitious goals to expand its service across multiple U.S. cities and into other parts of the world, including London. It's also coming off a significant funding round, having raised $16 billion at a valuation of $126 billion. A blocked path in New York state complicates that national expansion map.
Tesla, meanwhile, has been busy on the robotaxi front, recently unveiling the production-ready version of its Cybercab. The company also secured a key waiver from the Federal Communications Commission to use Ultra-wideband (UWB) radios for its wireless charging stations—a technical step forward that now meets a regulatory step back in one key market.
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