Uber and Waymo have broken up in this major American city

Uber and Waymo have reached an agreement in 2023 to introduce a “strategic partnership” for residents of Phoenix, Arizona. As part of this multi-year collaboration, several Waymo autonomous vehicles have been added to Uber’s fleet for local delivery services and rideshare travel. Uber initially announced the move on an official blog, sharing that it was “excited to bring Waymo’s incredible technology to the Uber platform.” This collaboration has now ended and Waymo cars are no longer available in Phoenix through the Uber app.

According to Reuters, an Uber spokesperson said it was an “intentionally limited rollout” from the start. Basically, the contract is over and the “pilot” is finished. In Austin, Texas, and Atlanta, Georgia, Waymo vehicles are still available to hail via Uber. So it’s not like the companies are going their separate ways completely. As for the small Phoenix fleet, Waymo has already reintegrated them into its own services, and these vehicles are now available through the Waymo app.

According to Inc, Waymo called the pilot a success, saying it “paved the way for future expansions and partnerships around the world.” The small fleet has also taken “hundreds of thousands of trips” with Uber and will continue to take more via Waymo in the future. Granted, this also comes at a time when 3,900 Waymo vehicles have been recalled over brake safety concerns across the country. On the other side of the coin, Uber reportedly has another vehicle partnership in the works for Phoenix, although no official announcements or names have been shared yet.

A Goldman Sachs study predicts that the global robo-taxi market will reach $415 billion by 2035, with $48 billion coming from the U.S. market alone. Morgan Stanley (via SCMP) estimates that the global market will reach $1 trillion by 2040. Regardless, the market is seeing incredible growth, with Uber and Waymo accounting for a large share. Technically, the two companies are competitors, with Uber aiming to serve as a general marketplace for ride-sharing services, regardless of where the vehicles and taxis come from. Of course, this goes against Waymo, which aims to expand the direct relationship with customers, mainly runners.

With the Phoenix partnership having ended, Waymo vehicles that were previously available through Uber now serve the same local customers through its own services. This also includes Waymo’s integration with other platforms, like DoorDash and ride-hailing company Via. The two companies remain partners in different cities where you can hail a robotaxi. Waymo is looking to expand into other regions and major cities, meaning it will compete for market share in some locations, but its expansion has hit a legal hurdle in Boston, Massachusetts. Its smaller service area is dwarfed by Uber, which is now available in more than 15,000 cities internationally.