The New York governor's push to allow driverless taxis on state roads collapsed in February, but rideshare drivers across the region say the threat to their livelihoods is far from over.

Gov. Kathy Hochul withdrew her proposal to let companies like Waymo run limited robotaxi pilots outside New York City after labor unions and rideshare drivers mounted opposition, according to the New York Post. Hochul spokesperson Sean Butler said in a statement that legislative support was not there to advance the plan.

Introduced during Hochul's State of the State address in January, the proposal would have let municipalities outside the city opt in to autonomous ride-hail pilots, according to Wired. Companies would have needed a $1 million application fee, $5 million in insurance and proof of local support, Newsday reported. Waymo did not answer Newsday's questions about whether it would seek to begin testing on Long Island, in Westchester or in upstate cities.

That silence has not calmed drivers.

Uber CEO Dara Khosrowshahi, speaking on Semafor's Compound Interest podcast, described a future where autonomous vehicles expand service "not just in the center of New York City, but in a Brooklyn and a Westchester County." He called autonomous technology "another trillion-dollar-plus opportunity."

For drivers who depend on rideshare income, that vision is alarming. Michele Dottin, an Ocean Hill, Brooklyn resident who has driven for rideshare companies for 11 years, told News 12 Brooklyn in January that the proposal threatens one of the few remaining paths to stable independent contract work.

"There are not too many places where you can be an independent contractor and still maintain a decent livelihood," Dottin said.

Pedro Acosta, a 25-year professional driver who works for both Lyft and Uber, told NY1 in January that the flexible hours let him care for a child who uses a wheelchair. He warned that more than 140,000 licensed drivers in New York could lose work.

Sonam Lama, a rideshare driver in Queens, told the Times Union that rideshare is his full-time income and that when drivers lose earnings, the businesses around them feel it, too.

Brendan Sexton, president of the Independent Drivers Guild (IDG), which represents more than 80,000 for-hire vehicle drivers in New York City, said the guild has already seen wage losses in cities where robotaxis operate. He called on Albany to pass legislation requiring a human driver behind the wheel in every vehicle and to conduct a comprehensive study of the impact on the state.

The IDG gathered more than 20,000 signatures on a petition to ban autonomous vehicle testing and services in New York, according to EV.

Data from other cities offers early warning signs.

Business Insider reported that hourly driver wages declined in Austin, Los Angeles, Phoenix and San Francisco, all cities where Waymo operates, while the national median rose 1%. Researchers told Business Insider the data could not establish robotaxis as the cause. Gad Allon, a Wharton professor who studies the gig economy, told the outlet that Waymo's roughly 15% share of gross bookings in those markets is a "serious shock" to the labor market, even though the impact shows up as fewer trips per hour rather than outright layoffs.

A Siena Research Institute poll found that 51% of New York respondents agreed driverless cars would threaten driver jobs, and 58% said they would feel unsafe, the Times Union reported.

For now, New York law still requires a human driver behind the wheel. Waymo's New York City testing permits expired March 31, and no collisions were reported during the testing period, according to EV. Mayor Zohran Mamdani, who has ties to the taxi driver community, said in a statement that his administration is committed to delivering for the workers who keep the city running.

Waymo's lobbying has not stopped. Streetsblog reported that Waymo spent $1.1 million lobbying New York officials in the first half of 2026. State records show the company retained The Parkside Group at $15,000 per month through at least September to lobby on autonomous vehicle legislation, according to EV.

State Sen. Luis Sepúlveda, a Bronx Democrat, sponsors legislation requiring a human driver behind the wheel and actively driving in vehicles operated for hire.

The next state legislative session will determine whether Albany reopens the door to driverless ride-hail or keeps it shut.