New York Governor Hochul pulls robotaxi expansion proposal

By David Shepardson and Zaheer Kachwala

Feb 19 (Reuters) - New York Governor Kathy Hochul has withdrawn her proposal to allow commercial robotaxi services in smaller cities outside New York, a spokesperson for the governor said on Thursday.

"Based on conversations with stakeholders, including in the legislature, it was clear that the support was not there to advance this proposal," the spokesperson said.

The move is a setback to Alphabet's GOOGL.O autonomous vehicle unit Waymo, which received its first permit to begin testing autonomous vehicles in New York City in August, albeit with a trained specialist behind the wheel.

The unit, which is providing about 400,000 driverless rides weekly to the public in the San Francisco Bay Area, Los Angeles, Phoenix, Austin, Atlanta and other cities, was hoping to grow its already sizable foothold in the robotaxi market and tap into a large pool of new users.

"While we are disappointed by the Governor's decision, we're committed to bringing our service to New York and will work with the State Legislature to advance this issue," a Waymo spokesperson said.

Waymo's authority to test in New York City will expire on March 31 if not extended, the company said. The company is not permitted to offer paid driverless rides in New York.

"We hear from thousands of New Yorkers who have experienced Waymo in other cities and want access to it at home," the spokesperson added.

Self-driving operations already face a difficult path to commercialization, as the technology has been under heavy scrutiny over safety concerns after accidents involving autonomous vehicles.

U.S. agencies opened an investigation after a Waymo self-driving vehicle struck a young girl near an elementary school in Santa Monica, California last month, causing minor injuries after she ran across the street from behind a double-parked SUV.

"Autonomous vehicles are already driving down accident rates and improving pedestrian safety in Arizona, California, and Texas. It's disappointing that Governor Hochul is withdrawing her proposal, because New Yorkers deserve the same proven protections," Chamber of Progress CEO Adam Kovacevich said.

Some lawmakers want Congress to pass legislation that would make it easier to deploy self-driving vehicles nationally.