Waymo, Alphabet's autonomous vehicle division, has held internal discussions about whether to terminate its commercial partnership with ride-hailing firm Uber, according to a report citing people familiar with the matter. The reported conversations come as the two companies grapple with mounting disagreements over how the collaboration is operating and how it should be remunerated.
Uber's stock reacted to the news, closing down 4.3% on the day the report emerged. The partnership at issue was publicly announced in 2023 and placed Waymo vehicles onto Uber's ride-hailing platform in select markets.
Sources cited in the report described a series of operational and commercial flashpoints. On the operational side, Waymo has reportedly raised concerns about the cleanliness of vehicles and the routing decisions affecting its robotaxis. On the commercial side, Uber has complained about the sudden unavailability of Waymo vehicles in adverse weather conditions and characterized the financial terms of the arrangement as "unsustainable." The two firms were described as pursuing diverging objectives.
According to the report, Waymo has informed Uber that it plans to begin operating independently in the same markets once the contract permits - namely in January 2028. Both companies were said to be unreachable for immediate comment, and the report could not be independently verified.
The reported straining in the relationship follows another recent change in their joint operations. Late in June, the firms ended their self-driving partnership in Phoenix, Arizona. Waymo vehicles remain accessible through Uber's platform in Austin and Atlanta, where the companies continue to operate together.
The situation presents a set of commercial and operational issues that could affect how autonomous vehicle services are offered via third-party platforms and how investors price companies exposed to ride-hailing and self-driving technology. At present, the public details are limited to the referenced operational complaints, the characterization of the deal's finances, the announced contract timeline, and the markets where the partnership remains active.
Note: The available reporting identifies the disputes and an intention by Waymo to consider independent entry in 2028; it does not provide additional confirmed outcomes or new timelines beyond those reported.