NY Governor Backs Robotaxis Statewide Except in NYC

New York Governor Kathy Hochul announced on Tuesday plans for new legislation that would allow commercial robotaxis to operate across the state, with New York City standing as the main exception. The proposal, shared during her State of the State address, builds on the state's current pilot program for autonomous vehicles and targets areas outside the city to test driverless for-hire services.

Background

New York has long had strict rules on self-driving cars. State law requires drivers to keep one hand on the wheel at all times. This rule blocks fully driverless vehicles, which have no human at the controls. To get around this, the state set up a pilot program years ago. It lets companies test autonomous vehicles under certain conditions, but commercial passenger services have stayed out of reach.

Companies like Waymo, owned by Alphabet, have pushed hard to change this. They run robotaxi services in places like California, Texas, and Georgia. In those spots, vehicles carry paying riders without a driver. Waymo and others have spent time and money talking to state leaders. Public records show Waymo alone put over $370,000 into lobbying on transportation issues last year.

New York City adds its own challenges. The city issues separate permits for testing self-driving cars. Waymo got one last August. It allows up to eight Jaguar I-Pace vehicles to run in Manhattan and parts of Brooklyn. But these tests need a human safety driver in the car, and no passengers are allowed. That permit runs until March 31. To offer rides for pay, Waymo would need approval from the city's Taxi and Limousine Commission, which has not happened yet.

Past efforts to ease rules have stalled. A bill introduced last year to set up a framework for driverless operations sits in a state Senate committee. Governor Hochul's new push could move things forward, at least outside the city.

Key Details

The proposed law would expand the existing pilot program. It calls for 'limited deployment' of commercial for-hire autonomous passenger vehicles outside New York City. Companies must apply to join. Each application needs to show local support in the area and proof of meeting the highest safety standards.

Safety and Oversight

Multiple state agencies would review applications. These include the Department of Motor Vehicles, the Department of Transportation, and the New York State Police. The plan does not spell out exactly what 'limited deployment' means or how the state would measure safety records. More details should come in the governor's executive budget proposal, due out on January 20.

Waymo welcomed the news right away.

"Governor Hochul’s proposal to legalize fully autonomous vehicles is a transformative moment for New York’s transportation system. 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, creating a future where living in New York is safer, easier, and more accessible. We’re ready to work with leaders around the state to make this future a reality, and bring new infrastructure, career opportunities, and investment to the Empire State." – Justin Kintz, Waymo’s head of global public policy

Other firms like Amazon's Zoox and Tesla are also in the robotaxi space elsewhere. They could eye New York opportunities too. But the focus so far lands on Waymo, given its local testing and lobbying.

New York City's exclusion makes sense given its density and traffic. The streets there mix heavy pedestrian traffic, bikes, delivery vehicles, and buses. City regulators move slower on changes to keep control over taxis and rideshares.

What This Means

If the legislature passes the bill, robotaxis could start picking up fares in upstate cities and suburbs soon. Places like Buffalo, Albany, or Rochester might see pilot programs first, depending on local backing. Success there could build data to push for wider rollout, maybe even into the city later.

Safety stays front and center. Companies must prove their vehicles handle real roads well. State agencies will watch crash rates, response times, and compliance. Riders outside the city could get a new option for getting around, especially in areas with few taxis or buses.

Jobs come up as a big issue. Robotaxis could cut the need for human drivers. New York has thousands of for-hire drivers who rely on these gigs. Critics worry about lost wages and what happens to those workers. The current system charges fees that support driver protections and public costs. Autonomous firms might skip those, shifting burdens to taxpayers or riders.

Costs for rides are another question. Waymo says its service will lower prices over time. But data from other cities shows robotaxi trips often cost more than Uber or Lyft right now. If companies gain market control, fares could rise to cover expenses.

The plan ties into broader state goals. Governor Hochul has pushed for better traffic flow, slower speeds in cities, and congestion fees. Pairing that with self-driving tech could cut accidents and ease jams. Waymo points to its safety record in other states as proof it fits.

Communities will have a say. Local support is required for approvals. Town leaders and residents can push back if they see risks. This setup lets the state test the waters without a full statewide rush.

For companies, this opens a key market. New York has over 19 million people. Even limited starts could mean big growth. Waymo plans expansions in other cities like Las Vegas and Detroit this year. Adding New York spots would speed that up.

Lawmakers now take over. They must review the proposal, hold hearings, and vote. With the budget release coming soon, talks will heat up. The governor's backing gives it momentum, but changes could come as it moves through Albany.

Driverless tech keeps advancing. Other states have gone further, with full services running daily. New York's step-by-step approach balances innovation with caution, especially in its biggest city.