Alphabet’s Waymo is considering ending its partnership with Uber as tensions grow over robotaxi operations in Austin and Atlanta and over autonomous vehicle regulation.
The Financial Times, citing unnamed sources, reported that the self-driving car company has discussed internally whether to leave its existing agreements with the ride-hailing company.
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Uber said Waymo has already informed it that it intends to enter Austin and Atlanta on its own from January 2028, when the present contract allows.
Uber added that it expects to keep offering Waymo services in both cities until May 2028, when the agreement expires.
Waymo and Uber began working together in May 2023 to introduce robotaxis in Phoenix.
They later reached deals for Austin and Atlanta, where Waymo vehicles are offered only through the Uber app and Uber oversees the fleet with partner Avomo.
In May, the Phoenix arrangement ended when that agreement expired.
The relationship has worsened as both companies have become closer rivals in some markets and have supported different approaches to robotaxi laws.
One source cited in the report said the companies were “pursuing diverging objectives”.
According to the report, the companies have traded complaints about service and safety in the markets where they work together.
Waymo has complained about vehicle cleanliness and routing in Austin and Atlanta, while Uber has said its deployment has been limited.
In May, dozens of Waymo vehicles blocked a cul-de-sac in Atlanta, with the sources saying Uber was responsible for routing them.
Uber has also objected to the financial terms of the partnership and to Waymo vehicles becoming unavailable in bad weather.
In December, Uber contacted Waymo after incidents in Austin in which vehicles drove past stopped school buses.
Waymo has expanded in several US markets without Uber, using its own booking app, and plans at first to provide direct bookings in Austin and Atlanta alongside Uber, in the same way as its arrangement with Lyft in Nashville.
It has not ruled out a complete separation.
“We believe in a vibrant and collaborative AV ecosystem that champions innovation and provides riders with a choice in how they experience this technology,” Waymo was quoted as saying.
Uber said it was untrue that it was “anti-AV or seeking to slow AV deployment”.
It said hybrid networks “get the technology to consumers sooner while giving policymakers a practical framework to manage the transition”.
In February, Waymo completed a $16bn financing round that valued the autonomous driving company at $126bn on a post-money basis.
The investment was led by Dragoneer Investment Group, DST Global and Sequoia Capital.
Alphabet remains the largest shareholder, while Andreessen Horowitz and Mubadala Capital also took part.
