Uber And Waymo Broke Up In This Major US City - Here's Why

Uber and Waymo struck a deal in 2023 to introduce a "strategic partnership" for Phoenix, Arizona, residents. The multi-year collaboration saw several of Waymo's autonomous vehicles added to Uber's fleet for local delivery services and ride-hailing trips. Uber originally announced the move in an official blog, sharing it was "excited to bring Waymo's incredible technology to the Uber platform." That collaboration has now ended, and Waymo's cars are no longer available in Phoenix through the Uber app.

Per Reuters, an Uber spokesperson said it was "an intentionally limited deployment" from the beginning. Basically, the contract is done and the "pilot" is over. In Austin, Texas, and Atlanta, Georgia, Waymo's vehicles are still available to hail through Uber. So, it's not like the companies are parting ways completely. As for the small Phoenix fleet, Waymo has already integrated them back into its own services, and those vehicles are now available through Waymo's app.

According to Inc, Waymo framed the pilot as successful, saying it "paved the way for future expansions and partnerships across the globe." The small fleet also saw "hundreds of thousands of trips" with Uber and will continue to see more through Waymo in the future. Granted, this also comes at a time when 3,900 Waymo vehicles have been recalled for brake safety across the country. On the other side of the coin, Uber purportedly has another vehicle partnership in the works for Phoenix, although no official announcement or names have been shared as of yet.

Goldman Sachs research predicts the global robotaxi market will grow to $415 billion by 2035, with $48 billion from the U.S. market alone. Morgan Stanley (via SCMP) estimates the global market will hit $1 trillion by 2040. Either way, the market is looking at incredible growth, with both Uber and Waymo a big part of that. Technically, the two companies are competitors, with Uber wanting to serve as the general marketplace for ride-hailing regardless of where the vehicles and taxis come from. Of course, that's against Waymo, which is aiming to expand the direct relationship with customers, primarily being riders.

With the Phoenix partnership at an end, the Waymo vehicles that were previously available through Uber are now serving the same local customers through its own services. That also includes Waymo's integration with other platforms, like DoorDash and the public transit company Via. The two companies remain partners in various cities where you can hail a robotaxi. Waymo is looking to expand into other areas and major cities, which means it will go head-to-head in market share in some places, but its expansion has hit a legal speed bump in Boston, Massachusetts. Its smaller service area is eclipsed by Uber, which is now available in over 15,000 cities internationally.