New York Opens Door to Robotaxis, But Not in New York City

New York Governor Kathy Hochul announced plans to introduce legislation that would legalize commercial robotaxis across the state, a significant move after years of some of the nation's strictest autonomous vehicle rules. The proposal, revealed during her State of the State address, would expand the state's existing autonomous vehicle pilot program—with one major caveat: New York City would be excluded from the new rules.

The legislation represents a turning point for a state that has long resisted the autonomous vehicle revolution spreading through California, Texas, and Arizona. Currently, New York law requires drivers to keep at least one hand on the wheel at all times, effectively blocking fully driverless commercial operations. Companies like Waymo, Amazon's Zoox, and Tesla have been expanding their robotaxi services in other states while New York remained largely off-limits.

Background

New York has maintained a cautious approach to autonomous vehicles for years. While the state created a pilot program that allowed companies to test self-driving cars, it required a human safety operator behind the wheel at all times. This restriction meant that the kind of fully driverless operations running successfully in San Francisco and Las Vegas could not legally operate in New York.

Waymo, owned by Google's parent company Alphabet, has been the most visible player pushing for access to New York's market. The company has tested its Jaguar I-Pace vehicles in New York City under a special permit since 2024, but those vehicles must have a safety driver present and cannot carry paying passengers. The permit, which was extended through March 31, represents the closest the company has come to operating in the state.

Waymo has invested heavily in lobbying New York regulators, spending more than $370,000 on the effort in 2025 alone. The company already operates commercial robotaxi services in five U.S. cities and has announced expansion plans for Texas, Florida, Las Vegas, San Diego, and Detroit in 2026.

Key Details

Hochul's proposal would allow "limited deployment of commercial for-hire autonomous passenger vehicles" outside New York City. Companies wanting to operate robotaxi services would need to submit applications demonstrating two key things: local support for autonomous vehicle deployment in their area and adherence to the highest safety standards.

The legislation would involve multiple state agencies in the approval and oversight process, including the Department of Motor Vehicles, Department of Transportation, and New York State Police. However, the proposal contains significant gaps in detail. It does not clearly define what "limited deployment" means, nor does it explain how safety standards will be measured or enforced.

Hochul's office indicated that more specifics would be included in the governor's executive budget proposal, scheduled for release on January 20. The proposal also does not address how pilot programs might eventually expand into full commercial operations.

Why New York City Is Different

New York City operates under its own regulatory framework separate from state law. The city has its own autonomous vehicle testing permit policy and maintains stricter oversight than the state. Regulators have shown more caution about allowing driverless vehicles on city streets, which carry far more pedestrian and vehicle traffic than areas outside the city.

Waymo's current testing permit in Manhattan and Downtown Brooklyn requires safety operators and prohibits commercial passenger service. The company would need separate approval from the city's Taxi and Limousine Commission to offer commercial robotaxi services, a hurdle that remains significant.

"Governor Hochul's proposal to legalize fully autonomous vehicles is a transformative moment for New York's transportation system," said Justin Kintz, Waymo's head of global public policy. "With the Governor's leadership, New York has the opportunity to pair its investments in slower speeds, better traffic enforcement, and first-in-the-nation congestion management strategies with Waymo's demonstrably safe technology."

What This Means

The proposal could reshape transportation options across much of New York State, particularly in smaller cities and suburban areas where robotaxi services might operate. For companies like Waymo, it opens a pathway to finally commercialize their technology in New York after years of regulatory obstacles.

However, significant questions remain unanswered. The vague language around "limited deployment" and safety standards leaves room for interpretation and potential disputes during the approval process. Companies will need to navigate a multi-agency approval system, and the timeline for when services might actually launch remains unclear.

The exclusion of New York City is particularly notable given that the city represents the largest potential market for robotaxi services in the state. Any company approved for operations outside the city would face a separate, more complex process to eventually serve the five boroughs.

The proposal also comes amid broader debate about the impact of autonomous vehicles on transportation workers. Labor advocates have raised concerns about job losses in the for-hire vehicle industry, arguing that robotaxi companies should contribute to existing worker protections and industry stability rather than operating outside established regulatory frameworks.

Legislation introduced last year to create a framework for driverless operations had stalled in the state Senate's transportation committee. Hochul's new proposal could help move the issue forward, though its passage is not guaranteed. The state legislature will need to act on the proposal, and opposition from various quarters could slow or derail the effort.

For now, Waymo and other autonomous vehicle companies are positioning themselves to take advantage of the new opportunity. The company's earlier investments in New York lobbying efforts appear to be paying off, and the proposal suggests that the state is finally ready to join other major markets in allowing commercial robotaxi operations.