Alphabet's self-driving unit Waymo is exploring options to end its robotaxi partnership with Uber as relations between the two companies deteriorate, the Financial Times reported on July 24, 202611,10.
Waymo has already informed Uber that it intends to offer robotaxis on its own app in Austin and Atlanta starting in January 2028, alongside the existing Uber offering, Uber told TechCrunch2. The contract covering Austin and Atlanta expires in May 2028, according to Uber. The two companies already split in Phoenix earlier this year.
Uber shares fell nearly 5% on Friday following the report4,7. Alphabet shares ended Friday's regular session up 0.58%. In after-hours trading, Uber stock slipped an additional 0.01%, while Alphabet gained 0.06%.
The partnership has reportedly been strained by competition, regulatory differences, and disputes over service quality and safety. Earlier this year, Uber CTO Praveen Neppalli posted a video of what he described as unsafe and "scary" behavior by a Waymo robotaxi. In May, Uber CEO Dara Khosrowshahi criticized the behavior of robotaxis in school zones and emergency situations during an earnings call, though without naming Waymo directly.
Waymo has also found itself opposite Uber in a number of policy fights over robotaxi regulations.
Uber currently offers rides in autonomous Waymo vehicles through its app in Austin and Atlanta. Waymo has held internal discussions about ending the partnership and plans to enter both cities independently when the current agreement allows in January 2028, the Financial Times reported, citing people familiar with the matter.
Uber has invested more than $10 billion in autonomous vehicle partnerships since exiting its self-driving unit in 2020, according to TradingView's reporting.
Waymo did not immediately respond to a request for comment.
ANALYSIS The planned separation would mark a significant escalation in the competitive dynamics of the U.S. robotaxi market, with Waymo moving from a distribution partner model to direct competition with Uber in two key cities. The $10 billion Uber has committed to autonomous vehicle partnerships underscores the strategic stakes of losing access to Waymo's fleet. The Phoenix split earlier this year now appears to have been a precursor rather than an isolated event.