Waymo, the autonomous driving subsidiary of Alphabet, plans to end its exclusive robotaxi partnership with Uber in Atlanta and Austin. The move, slated to take effect in January 2028, comes as Waymo aims to provide rides directly through its own app in these cities.
Tekedra Mawakana, co-CEO of Waymo, stated that the decision was driven by customer feedback indicating a desire for a more consistent experience when ordering self-driving rides. "In the early days, we would partner because we didn’t have the scale, and in that partnering, it was a little bit of a crapshoot. Will I get a Waymo? Will I not get a Waymo?" Mawakana told Bloomberg News. She added that riders had expressed difficulty in securing Waymo vehicles through Uber in these markets, even when indicating a preference for an autonomous option.
This strategic shift signals a potential move by self-driving vehicle makers to bypass ride-hailing platforms like Uber and Lyft and establish direct relationships with consumers. This aligns with predictions by some investors that companies like Waymo and Tesla could eventually operate their own ride-hailing services independent of existing networks.
Waymo currently operates approximately 4,000 vehicles across the U.S., completing over 500,000 trips weekly in 14 cities. The company already offers rides via its own app in markets such as San Francisco, placing it in direct competition with Uber.
While Waymo is ending its exclusive partnership, it acknowledged the value of its collaboration with Uber. "Learning and partnering with Uber has been a really important part of our journey," Mawakana said.
An Uber spokesperson indicated that the company had sought to expand the self-driving ride option for customers in Austin and Atlanta but Waymo declined the request. Waymo has previously partnered with other ride-hailing services and fleet management companies as it scaled its operations.
The company is focused on profitability in the capital-intensive robotaxi sector. Waymo has invested significantly in fleet expansion, market presence, research and development, and maintenance. To potentially lower costs, Waymo has ordered vehicles from Chinese manufacturer Zeekr, a unit of Geely Holding Group, for its operations in cities like Los Angeles, San Francisco, and Phoenix.
Mawakana emphasized that price is not Waymo's primary concern, stating, "We are not trying to have this race to the bottom on what we’re offering to our riders. We really want to elevate the experience over time."
Waymo plans to double its fleet size to 8,000 vehicles by the end of the year, supported by a $5 billion loan. The company has also faced challenges, including traffic congestion issues in San Francisco, alongside touting an improved safety record, partly due to regulatory changes in reporting minor collisions.