Waymo Reportedly Considers Ending Robotaxi Partnership With Uber

Alphabet's autonomous vehicle unit, Waymo, is considering ending its partnership with ride-hailing giant Uber Technologies amid a deteriorating relationship, the Financial Times reported Friday, citing people familiar with the matter. The news prompted a negative market reaction, with Uber shares closing down 4.3% on the day.

Partnership Under Strain

According to the report, Waymo has held internal discussions about terminating the collaboration, which was first announced in 2023. The partnership allows Uber customers to hail Waymo's driverless vehicles through the Uber app in select cities.

The two companies have reportedly clashed over a series of operational and commercial issues. A source cited in the FT report characterized the firms as "pursuing diverging objectives," leading to friction in the high-profile alliance.

Points of Contention

The disagreements reportedly stem from differing expectations and operational standards. According to the Financial Times, the key sources of conflict include:

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• Waymo's concerns: The robotaxi firm has reportedly raised issues about the cleanliness and routing of its vehicles when used in the partnership.
• Uber's concerns: Uber has criticized the sudden unavailability of Waymo vehicles during adverse weather conditions and has described the deal's financial terms as "unsustainable."

Context and Next Steps

The partnership has already seen some changes, with the two companies ending their collaboration in Phoenix, Arizona, in late June. Waymo's vehicles remain available on the Uber platform in Austin and Atlanta.

The Financial Times report noted that Waymo has informed Uber of its intent to enter these markets independently in January 2028, when their current contract permits. Neither Waymo nor Uber could be reached for immediate comment, and Reuters, the original source of the report, could not independently verify the details.