New York Governor Kathy Hochul has withdrawn a proposal that would allow commercial robotaxi pilot operations outside New York City limits without a human safety operator in the vehicle. The decision was first reported by Bloomberg News earlier Thursday and is a major setback for Waymo as it attempts a rapid US expansion this year.

Bloomberg reported:

The proposal, which Hochul had included in a policy preview she presented last month, would have allowed autonomous-vehicle companies such as Waymo to apply for permission to pilot their services without human operators in the vehicle. The decision to withdraw the plan was confirmed Thursday by the governor's office to Bloomberg News.

"While we are disappointed by the Governor's decision, we're committed to bringing our service to New York and will work with the state legislature to advance this issue," a Waymo spokesperson said in a statement provided to Bloomberg.

Last week, Waymo co-chief executive Tekedra Mawakana told Bloomberg TV that the Hochul administration showed interest in launching robotaxis.

Even if it were outside the NYC metro area, "that gives us an opportunity to grow more fans," Mawakana said, adding that some customers of the service have been requesting robotaxis within city boundaries.

To note, Waymo is currently testing in NYC, but it is not yet operating a driverless commercial robotaxi service. As of early 2026, its activity includes a small fleet with safety drivers in parts of Manhattan and Downtown Brooklyn.

"We hear from thousands of New Yorkers who have experienced Waymo in other cities and want access to it at home," the Waymo spokesperson added. "They want the safety, privacy and comfort that riders in other major cities already enjoy."

Last month, Goldman analyst Eric Sheridan provided clients with an update on the North American autonomous-vehicle (AV) rideshare market, which is quickly gaining momentum. Read the report here.

"The rise in commercial autonomous vehicle deployments remains a key debate among investors and has continued to gain momentum throughout 2025. In the medium term, we believe that AV rideshare could represent a mid-single-digit percentage of total rideshare industry bookings," Sheridan said.

Current robotaxi operations

The lingering question: who persuaded Hochul to kill the robotaxi expansion proposal?