Lawmakers are discussing federal legislation to facilitate broader deployment of self-driving vehicles, though opinions vary amid safety and regulatory hurdles.

Market reactions were modestly negative, with Alphabet and Tesla shares dipping slightly following the news.

The withdrawal underscores tensions between tech-enabled mobility pilots, labor groups, and regulatory barriers to robotaxi expansion in major cities.

Industry voices argue autonomous vehicles can reduce accidents and improve pedestrian safety, while some critics say New York’s withdrawal limits access to protections and rides.

The plan to allow limited commercial robotaxi use outside New York City was withdrawn by Governor Hochul, affecting Waymo’s expansion ambitions in the state.

Waymo remains committed to bringing autonomous rides to New York and will work with the Legislature to advance the issue with a focus on collaboration, transparency, and safety.

Waymo operates roughly 400,000 driverless rides per week in other major U.S. cities and sought to expand its New York footprint amid a broader push for robotaxi deployments.

Industry and policymakers continue debating how to balance innovation, consumer access, and protections for workers and pedestrians.

Competitors like Tesla and Zoox are pushing forward with driverless systems, highlighting ongoing global competition in autonomy.

Safety concerns around autonomous vehicles persist, including investigations after a Waymo hit-and-run-style incident in Santa Monica, fueling the safety debate.

Waymo’s safety record is weighed against incidents involving other operators, such as GM’s Cruise, which faced a high-profile accident in San Francisco.

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