NY Governor Withdraws Robotaxi Proposal Outside NYC

New York Governor Kathy Hochul has withdrawn a proposal that would have permitted limited commercial robotaxi operations in communities outside New York City, dealing a setback to autonomous vehicle companies amid strong opposition from labor groups and a lack of legislative support.

The decision, announced Thursday as part of amendments to the state's budget proposal, ends a plan unveiled in January to allow pilot programs for driverless ride-hailing services in smaller cities and towns. The proposal sought to amend state vehicle laws, including the requirement for drivers to keep one hand on the wheel, to enable companies to seek local approvals for such operations. However, it included restrictions: services would be barred in cities with populations exceeding one million, companies would need state transportation commissioner approval, pay a $1 million fee, and demonstrate $5 million in financial security. Local governments would also have to show resident support for any pilots.

Hochul's office cited insufficient backing in the state Legislature as the reason for the reversal. "Based on conversations with stakeholders, including in the legislature, it was clear that the...