On Friday, Uber's stock fell sharply, closing 4.3% lower after reports surfaced that Waymo is considering ending its collaboration with the ride-hailing giant.
The partnership, which has been active since 2023, currently allows Waymo's self-driving vehicles to operate through Uber's app in Austin and Atlanta.
According to the Financial Times, Waymo has been discussing internally the possibility of terminating its agreements due to ongoing disputes about service quality, vehicle cleanliness, routing, and unfavorable financial terms.
Concerns have also been raised about Waymo’s vehicles going offline during adverse weather, further straining the relationship.
These issues have created diverging goals between the companies, suggesting their alliance might be coming to an end.
Earlier, in late June 2026, the partnership in Phoenix was quietly dissolved, marking the first sign of separation.
Waymo has formally notified Uber of its plan to operate independently in Austin and Atlanta starting January 2028, the date when their current contract allows for such a move.
This transition is not abrupt but scheduled well in advance.
Beyond operational challenges, both companies are now lobbying regulators to shape robotaxi laws favoring their respective models.
Uber relies heavily on external autonomous vehicle providers like Waymo to grow its robotaxi fleet, so Waymo’s exit would force Uber to reconsider its strategy or find new partners.
While Alphabet’s stock nudged up slightly by 0.65% on Friday, Uber’s shares took the brunt of investor worries.
For now, the partnership continues in Austin and Atlanta, but January 2028 remains a key milestone to watch.
