Alphabet’s self-driving vehicle unit Waymo is considering ending its partnership with Uber as tensions between the two companies escalate amid growing competition in the autonomous ride-hailing sector. Internal discussions within Waymo have addressed the possibility of terminating existing agreements with Uber, which currently operates autonomous ride-hailing services in Austin and Atlanta using Waymo vehicles, according to sources familiar with the matter.
Uber confirmed that Waymo has informed the company of its intention to launch its own robotaxi services in these markets independently starting in January 2028, aligning with the expiration of their current contract. The collaboration between Waymo and Uber, which began in 2023, has increasingly frayed as both companies compete directly in some cities and engage in lobbying efforts to influence robotaxi regulations that favor their respective strategies.
Industry insiders describe the two companies as “pursuing diverging objectives,” with repeated mutual accusations concerning service quality and safety. Waymo has criticized Uber’s handling of vehicle cleanliness and routing, while Uber has claimed operational constraints and flagged financial concerns regarding the partnership terms and Waymo’s autonomous vehicles’ reliability in adverse weather conditions.
The split is likely to impact Uber’s ambitions in autonomous vehicles, an area where the company has sought to regain footing after selling its own AV division in 2020. Over the past year, Uber has invested more than $10 billion through equity stakes and partnerships to build its autonomous fleet. Investor confidence appears to have been shaken by these developments, contributing to a more than 16 percent decline in Uber’s stock value this year, with a 4 percent drop following reports about Waymo’s potential exit.
Waymo operates a growing fleet of over 3,800 autonomous vehicles across 10 U.S. cities and has been expanding aggressively, raising $16 billion in February at a valuation of $126 billion. Since first teaming up with Uber in May 2023 to introduce robotaxi services in Phoenix, their partnership extended to Austin and Atlanta, where Waymo’s cars are exclusively available via the Uber app, and the fleet management is overseen by Uber in collaboration with its partner Avomo.
However, the cooperation has seen setbacks, including the dissolution of their Phoenix arrangement in May when their contract expired, and operational disputes regarding the quality and management of Waymo vehicles in Austin and Atlanta. Incidents such as the November congestion caused by dozens of Waymo vehicles blocking a cul-de-sac in Atlanta—an issue attributed to Uber’s routing—have fueled tensions.
Despite the challenges, Waymo has not ruled out a full separation from Uber. In a statement, Waymo emphasized the importance of “a vibrant and collaborative AV ecosystem that champions innovation and provides riders with a choice in how they experience this technology,” signaling its openness to continuing a diversified approach to the autonomous vehicle market.