Uber Waymo exclusivity in Atlanta and Austin to end in 2028

The Uber Waymo exclusivity arrangement in Atlanta and Austin is set to end in early 2028, changing how riders in two major robotaxi markets can book driverless trips. For investors, the shift shows Waymo pushing for a more direct relationship with riders while Uber keeps building a broader autonomous vehicle platform.

An Uber spokesperson told CNBC by email that Waymo notified the company it plans to launch the Waymo app in Austin, Texas, and Atlanta in January 2028. Waymo’s vehicles are currently available in those cities only through Uber’s app.

The existing contract does not end immediately. Uber said hundreds of Waymo robotaxis will stay on its platform in Atlanta and Austin through at least May 2028, according to CNBC.

What is changing with Uber and Waymo?

Riders in Austin and Atlanta are expected to gain another way to hail Waymo vehicles once the Waymo app launches in those markets. A robotaxi is a ride-hailing vehicle that operates without a human driver in the car.

The change also gives Uber room to add other autonomous vehicle companies to its app in both cities. That matters for Uber’s long-term ride-hailing model: if self-driving cars become a larger part of urban transportation, Uber wants to be the booking platform for more than one operator.

Waymo, which is owned by Alphabet, has already shown it can attract riders outside exclusive Uber arrangements. The company’s website says its robotaxi service is live in nine other markets, and CNBC reported that additional cities are in different stages of testing.

Waymo has also made at least one other non-exclusive ride-hailing partnership. Last year, the company reached a deal with Lyft to offer robotaxi rides in Nashville, Tennessee, according to CNBC.

Why investors are watching the robotaxi split

Uber shares fell more than 4% after the news, CNBC reported. The move reflects investor focus on how much leverage Uber will have if autonomous vehicle operators can reach riders directly through their own apps.

A Waymo spokesperson told CNBC by email that riders need “choice in how they experience this technology.” The spokesperson said that choice is important to the industry’s future and to Waymo’s goal of making its app and safety technology available to riders broadly.

The Financial Times reported Friday that Waymo had internal discussions about whether to separate from Uber because of tensions between the companies. The report said those tensions included conflicting policy proposals the companies are pursuing in different U.S. markets.

Uber has also been investing in autonomous vehicle technology outside Waymo. CNBC reported that Uber has committed to buying vehicles from partners including Waabi, Wayve, Nuro and Rivian once their self-driving cars are validated as safe to operate without a human supervisor or driver onboard.

The robotaxi market is getting more crowded. Tesla, Amazon’s Zoox and other autonomous vehicle developers are offering standalone apps that let riders book driverless trips, according to CNBC. For Uber and Alphabet shareholders, the Atlanta and Austin change is another sign that the next phase of ride-hailing may be shaped as much by app distribution as by the vehicles themselves.

This story draws on original reporting from CNBC.