A Three-Year Deal Comes Undone
For the past three years, Uber has been the only way to hail a Waymo robotaxi in Atlanta and Austin. That arrangement is about to dissolve.
The current contract runs until May 2028, so that hundreds of Waymo self-driving cars will still be accessible via Uber until at least that time, according to an Uber spokesperson who confirmed the news to CNBC by email.
Why now? This shift comes as Waymo has gained significant momentum in the autonomous ride-hailing space in a number of U.S. cities. Waymo currently operates its self-driving taxis in nine additional markets, according to the company's website, with more cities engaged in various stages of testing.
According to a Friday report from the Financial Times, internal talks at Waymo about dissolving the exclusive deal were fueled by tensions between the companies, including disputes over local regulatory positions.
Get the market news that matters in a five-minute read with Market Briefs, our free daily newsletter
A Waymo spokesperson stated via email, "users need choice in how they experience this technology," and added, "This is essential to the industry's future and to our vision of making the Waymo app and the safety of our technology available to riders everywhere."
Waymo's move to go direct in Atlanta and Austin is part of a larger push to build its own rider base and brand. The company already operates autonomous taxis in markets like San Francisco, Phoenix, and Los Angeles, and has been scaling its fleet rapidly. By launching its own app, Waymo can capture more revenue per ride and develop direct customer relationships, a strategy also pursued by Tesla and Amazon's Zoox.
What Uber Loses and Gains
For Uber, losing exclusive access to Waymo's robotaxis in two cities is a real blow.
However, the new arrangement permits Uber to introduce rival autonomous vehicles to its service in Atlanta and Austin. Apart from its partnership with Waymo, Uber has been pouring resources into autonomous vehicle development and has pledged to purchase cars from various collaborators, such as the startups Waabi, Wayve, and Nuro, together with EV manufacturer Rivian, once their autonomous vehicles are certified to operate safely without a human behind the wheel.
Meanwhile, Waymo is not the only company building its own app. Tesla, Amazon's Zoox, and numerous other companies are building their own applications for summoning autonomous taxis. In the previous year, Waymo entered into a non-exclusive arrangement with Lyft to provide self-driving taxi services in Nashville, Tennessee.
What This Means for Your Money and Your Ride
For riders in Atlanta and Austin, the short answer is: nothing changes until early 2028. For now, you can still hail a Waymo through Uber. After January 2028, you will have two ways to get one - the Uber app and the Waymo app. And Uber will be free to add other self-driving cars to fill the gap.
Join Market Briefs, our free daily newsletter, for a quick daily rundown of the markets
