Robotaxis Are Here, But So Is the Backlash

Robotaxis are on the rise, and so is the battle over the regulations that govern them.

In New York, Governor Kathy Hochul recently scrapped a proposal that would have allowed driverless robotaxis to operate outside of New York City, following pushback from taxi drivers, unions, and state lawmakers. Six months later, commercial driverless services remain illegal in the state, and efforts to change that are at a standstill.

In Washington, D.C., labor unions are opposing legislation aimed at legalizing commercial robotaxis. Lawmakers are considering a cap of 200 vehicles and a 15-cent-per-mile fee to fund Metro improvements and support workers displaced by autonomous vehicles. A City Council hearing on the proposal lasted an exhausting 10 hours in July.

Meanwhile, in San Francisco, Mayor Daniel Lurie, a strong advocate for robotaxis, is now calling for stricter regulations after Waymo’s vehicles caused traffic disruptions during emergencies and major events. As of July, California police can now issue citations to autonomous vehicle manufacturers when their driverless cars violate traffic laws.

While Congress has yet to enact comprehensive robotaxi legislation, federal regulators are increasing their scrutiny. The National Highway Traffic Safety Administration recently cautioned autonomous vehicle companies that vehicles unable to safely interact with emergency responders pose a public safety risk.

Even in states that have generally embraced autonomous vehicles, governments are struggling to find effective oversight. Texas has begun enforcing new permitting requirements for commercial AV operators, while cities in Florida have expressed frustration that state preemption laws limit their ability to address local issues.

Taxi drivers, labor unions, and safety advocates have been opposing autonomous vehicles for years, but the stakes have become more immediate. With robotaxis now a reality on city streets, policymakers are faced with complex questions about safety, regulation, growth, and employment. They must determine how quickly fleets can expand, what companies need to prove before scaling up, and how much authority cities and states should have over their operations.

Waymo, the leading player in the market, currently operates over 3,500 vehicles in 11 U.S. cities. Zoox, a unique robotaxi designed without a steering wheel, has started offering paid rides in Las Vegas and continues to provide free trips in San Francisco as part of its Explorer program. It plans to expand this program to Austin and Miami later this year. Tesla, which initiated its Robotaxi rollout with a safety monitor over a year ago, is now expanding its unsupervised fleet ahead of the launch of its dedicated robotaxi, the Cybercab, later this month.

Despite the political focus, robotaxis still represent a small fraction of the U.S. ride-hailing market. Waymo provides over 500,000 paid rides weekly, while Uber handles around 40 million trips daily. At this scale, robotaxis have not significantly displaced driving jobs or transformed urban transportation. However, their visibility far exceeds their market share, especially when a driverless car stops inappropriately during a blackout or disrupts emergency services.

As autonomous fleets grow from thousands to potentially hundreds of thousands of vehicles, the ongoing battles across the country are increasingly centered on the terms of their expansion: what companies must demonstrate before scaling, their obligations to cities and workers, and the extent of local and state control over operations.

In many regions, the rollout of robotaxis has outpaced the establishment of regulatory frameworks. “Robotaxis are popping up all over the place,” said Shua Sanchez, national campaign director of a nonprofit advocating for stricter state AV legislation. “State legislatures lack experience with this technology, and there aren’t adequate laws to regulate them.”

This organization is collaborating with lawmakers in New Jersey and New York on a three-part strategy. They advocate for multi-stage testing and commercial deployment permits, requiring companies to prove their vehicles can operate safely with a limited fleet before expanding, while also sharing safety data post-launch. They also want autonomous vehicles to utilize various sensors instead of relying solely on cameras, as Tesla does, and are calling for restrictions on marketing terms like “Autopilot” or “Full Self-Driving” for driver-assist features that still require human oversight.

The group is not against autonomous vehicles, Sanchez clarified, but is “pro the safe development of technology.” He emphasized that AV safety is not a settled issue, and even a strong safety record today does not guarantee future safety after software or hardware updates.

Senator Ed Markey has echoed similar concerns about transparency. “Autonomous vehicle companies are making huge claims about how their technology is going to save lives,” he stated. “But right now, our regulatory structure amounts to this: we hope they’re telling the truth.”

Markey has investigated the use of remote human operators by AV companies and introduced legislation requiring regular safety data reporting. “Communities deserve transparency and consistent oversight before we let Big Tech invade their public roads,” he added.

However, safety is just one aspect of the debate. For labor groups, the economic implications are significant. Peter Finn, Teamsters international vice president, described autonomous vehicles as an “existential threat” to many jobs, including those of truckers, delivery drivers, and other commercial drivers.

Like other stakeholders in the robotaxi discussion, the Teamsters are not opposed to new technology in principle. However, they advocate for measures that would limit how autonomous vehicles are deployed. This includes requiring heavy-duty autonomous vehicles, like semitrucks, to have a trained human operator on board—legislation the Teamsters have previously pushed in California, only to see it vetoed by Governor Gavin Newsom. Finn indicated that the Teamsters plan to revisit this issue.

“If the technology is solely designed to automate and eliminate labor costs, the only entity benefiting from that is corporations,” Finn stated.

The Teamsters’ immediate legislative focus is not on robotaxis themselves but on the broader implications of autonomous driving. Finn views Waymo and Zoox as precursors to a larger battle over automation, particularly given Zoox’s ownership by Amazon, which could lead to similar technology being applied to package delivery.

Both Zoox and Waymo maintain that their current focus is on their robotaxi services. The objections raised extend beyond specific safety regulations or labor concerns. Resistance to AVs has become part of a larger backlash against Big Tech’s expanding presence, from data centers to surveillance cameras. Companies are investing heavily in new infrastructure, and many residents are questioning what benefits they receive in return for these developments in their communities.

Robotaxi companies are also seeking to get ahead of potential backlash and navigate a confusing landscape of state and local laws by influencing the regulations themselves. This includes supporting certain regulations while opposing those they consider overly restrictive.

“I want to unequivocally say we agree with the administrator and the administration and the regulatory agency. We need to be regulated,” said Zoox CEO Aicha Evans in response to NHTSA’s warnings about unsafe interactions with emergency vehicles.

Zoox is also working to prevent conflicts before entering new markets. Ron Thaniel, the company’s senior director of policy and regulatory affairs, mentioned that Zoox establishes communication with local and state officials and engages with first responders before launching in a city. As the industry grows, he sees “an opportunity at the federal level to more uniformly regulate autonomous vehicles.”

Waymo shares a similar perspective. “I think there definitely needs to be some regulation,” said Waymo’s global head of public policy, Justin Kintz. “They’re powered by incredible technology that makes the world a safer place, but it still needs oversight from the federal government, from states, and from cities in the same way that they manage human drivers today.”

Zoox and Waymo are not alone in their desire for clearer regulations. The Autonomous Vehicle Industry Association, which includes both companies, has noted that only about half of U.S. states have laws allowing vehicles to operate without human drivers. The industry group believes states should create a legal framework for AVs, require plans for first-responder interactions, and set minimum standards before vehicles can operate autonomously.

Waymo has long advocated for a national AV safety standard that includes minimum testing requirements, vehicle design, and data sharing. Under its proposed system, the federal government would continue to set vehicle safety standards, while states would manage road rules and cities would address local issues like curb space and emergency response.

Disagreements often arise over the specifics. In Washington, D.C., Waymo has expressed general support for a regulatory framework that would allow commercial robotaxi services, including funding transit and assisting workers as transportation becomes more automated. However, it has raised concerns about certain aspects of the proposal.

Waymo believes a 200-vehicle cap would be too restrictive for a city of Washington’s size. While it is open to starting small, it wants regulators to allow fleets to grow as companies demonstrate safe performance rather than imposing a permanent limit.

“I don’t think legislation needs to set a hard cap on that,” Kintz stated, “or it’s going to lead to preventing important groups from being able to access the service when they need it.”

The company is more amenable to the proposed 15-cent fee for every mile an autonomous vehicle travels. Kintz noted that Waymo supports “the fundamental principle of raising revenue” for transit and affected workers, although it raised concerns that a per-mile charge could become prohibitively expensive for smaller AV operators. An annual fee could be a viable alternative.

Emergency response is another area where Waymo supports regulation, even as it contends that some coordination efforts are already in progress. After NHTSA called for stronger collaboration between AV companies and first responders, Waymo expressed its eagerness to participate in those discussions. The company maintains dedicated training programs for first responders and offers 24/7 priority lines for dispatchers and officers, although Kintz acknowledged, “we haven’t always got it right.”

Waymo is also advocating for the idea that robotaxis can enhance, rather than undermine, public transit. In a recent piece, Waymo’s policy development and research manager argued that the company shares common goals with urbanists aiming to reduce reliance on private vehicles. Waymo reported that in San Francisco, over a third of its riders use the service to connect with public transportation. However, research suggests that robotaxis could replace some trips that would have otherwise been taken on public transit, potentially harming ridership.

On the labor front, Waymo contends that while automation may eliminate certain tasks, it will also create new job opportunities. “These cars don’t clean, charge, fix themselves, code themselves,” Kintz pointed out, highlighting roles such as fleet technicians, mechanics, remote support workers, and operations managers. However, removing the driver from the equation could have significant economic ramifications. Recently, Uber reported that 10.2 million drivers and couriers earned money on its platform in the second quarter.

Kintz acknowledged the potential for autonomous vehicles to displace drivers and stated that Waymo is “eyes open” about that possibility. However, he argued that this transition would occur gradually and that unions could play a role in developing retraining and reskilling programs for affected workers.

When asked whether autonomous driving would ultimately create more jobs than it eliminated, Kintz replied that it was “too soon to tell.”

Notably, Waymo continues to expand its operations amid these ongoing discussions. The California Public Utilities Commission recently authorized the company to broaden its driverless passenger service across parts of 18 counties, including Sacramento, San Diego, and more areas in Los Angeles and the Bay Area.

For now, robotaxis are providing a limited number of Americans with transportation options. The current debates are focused on what the future holds if their presence grows.