Waymo explores split with Uber as robotaxi tensions deepen

Alphabet’s Waymo is exploring options to exit its Uber partnership, with the relationship between the two tech groups souring amid an intense lobbying battle over the future of robotaxis.

The self-driving car company has held internal talks about ending its current deals with the ride-hailing group, which operates services in Austin and Atlanta, according to multiple people familiar with the matter.

Waymo has already notified Uber that it plans to enter these markets independently in January 2028 when their contract allows, the ride-hailing group said in a statement.

The relationship between the two companies, which first partnered in 2023, has deteriorated as they have become increasingly direct competitors in some markets and both lobby for robotaxi legislation that would benefit their own business at the expense of the other.

The two companies were “pursuing diverging objectives”, one person said.

Waymo and Uber have traded complaints, blaming each other for poor service and safety issues in the markets where they work together.

A break-up between the two groups is expected to dent Uber’s autonomous ambitions. It has been racing to make up lost ground after selling its in-house autonomous vehicle arm in 2020, committing more than $10bn over the past year through equity stakes and robotaxi fleet agreements.

Uber’s share price has slid more than 16 per cent in the year to date in part owing to investors’ concerns that the company will be overtaken by AV providers. Its stock fell 4 per cent on the news Waymo might walk away.

Waymo has already made inroads in some US cities and has been eroding Uber’s market share in locations such as San Francisco.

The company operates more than 3,800 vehicles across ten cities. In February, it raised $16bn at a $126bn valuation to fund its expansion.

Waymo first partnered with Uber in May 2023 to launch robotaxis in Phoenix. This was followed by deals in Austin and Atlanta, where Waymo cars are only available through the…