Gov. Hochul's about-face on allowing robo-taxi pilots throughout the state died after pushback from lawmakers and labor — earning cheers from an Uber-linked driver's group.
The move to withdraw her budget proposal to allow deployment of Waymo-style driverless cabs outside of New York City puzzled some observers given the timing so early in the budget process — before the state Senate and Assembly released their budget rebuttals — and given that external opposition had certainly not reached a fever pitch.
"I had heard it [friction] was building, but I'm surprised it's this big or at least big enough for Hochul to cave now," political strategist Jack O'Donnell told Streetsblog. "Dropping your own initiative in the budget amendments seems almost unprecedented to me."
Assembly Member Karines Reyes (D-Bronx), an opponent, said that she and her colleagues hadn't even conferenced on this specific budget proposal, though it has come up during budget hearings. She sponsored legislation with state Sen. Luis Sepulveda that would ban robotaxis outright.
"I know colleagues who oppose, but the governor is no doubt talking to parties outside the legislature who have raised concerns," Reyes added.
And the Hochul administration noted that in a statement on the reversal, which was first reported by Politico. "Based on conversations with stakeholders, including in the legislature, it was clear that the support was not there to advance this proposal," said Hochul spokesperson Sean Butler.
Hochul's proposal would have allowed municipalities outside of New York City to opt into robo-taxi pilots, although the state Department of Motor Vehicles would be responsible for setting parameters and administering the program. Companies selected to operate would have had to pay a $1-million fee.
The reversal was welcome news for Uber and the ride-share industry, which is already working with Hochul to reduce car insurance premiums through a proposal that would make it harder for crash victims to be fully compensated for their injuries. Uber has contributed more than $3 million in ads backing the proposal, and Hochul counts its CEO as a campaign donor.
“We know the driverless car industry will continue its push, and this isn’t over. We will continue to stand up to this threat to New Yorkers’ safety, livelihoods, and the local economy,” said Brendan Sexton, president of the Independent Drivers Guild, an Uber-supported group.
The Guild also backs legislation that would ban robo-taxis from operating across New York and wants the state to study the impact of for-hire, driverless vehicles.
Labor unions and street safety advocates were also skeptical about the proposal.
Waymo is currently testing a robo-taxi fleet, albeit with drivers present, in New York City, and wants to expand across the five boroughs. It faces an uphill battle to convince state lawmakers to get behind a proposal that the governor just took off the table.
"We will continue to engage constructively with the governor, the Legislature, and officials around the state to deliver this proven mobility option that New Yorkers are waiting for," a Waymo spokesperson said in a statement.
State Senate Transportation Chair Jeremy Cooney (D-Rochester) lamented the news as well. "This is not science fiction, rather a real opportunity," he said in a statement.
Members of the business community, as well as disability advocates, also questioned the move, viewing companies like Waymo as a necessary addition to the state's transportation community and substantially safer.
"When people think of transit in New York," said Kevin Schwab, vice president at Center State CEO, a economic growth non-profit, "they certainly think of the city and how robust the transit system is within the five boroughs. ...We don't have the same density that you see downstate, and we are spread out in many areas where something like Waymo could go a long way to help fill some gaps."
