New York Governor Hochul pulls robotaxi expansion proposal

(Reuters) - New York Governor Kathy Hochul has pulled her proposal to allow commercial robotaxi services in smaller cities outside New York, a spokesperson for the governor said on Thursday.

"Based on conversations with stakeholders, including in the legislature, it was clear that the support was not there to advance this proposal," the spokesperson said.

The move comes as a setback to autonomous vehicle company Alphabet's Waymo, which received its first permit to begin testing autonomous vehicles in New York City last year, albeit with a trained specialist behind the wheel.

The unit, which offers paid driverless rides to the public in cities in the San Francisco Bay Area, along with parts of Los Angeles, Phoenix, Austin, Atlanta and other cities, was hoping to grow its already sizable foothold in the robotaxi market and tap into a large pool of new users.

"While we are disappointed by the Governor's decision, we're committed to bringing our service to New York and will work with the State Legislature to advance this issue," a Waymo spokesperson said.

"We hear from thousands of New Yorkers who have experienced Waymo in other cities and want access to it at home," the spokesperson added.

Self-driving operations already face a difficult path to commercialization, as the technology has been under heavy scrutiny over safety concerns after accidents involving autonomous vehicles.

"Autonomous vehicles are already driving down accident rates and improving pedestrian safety in Arizona, California, and Texas. It's disappointing that Governor Hochul is withdrawing her proposal, because New Yorkers deserve the same proven protections," Chamber of Progress CEO Adam Kovacevich said.