Uber's quiet war on partner Waymo: Execs slam driverless tech as 'scary' and 'unequal'

It seems even billion-dollar business partnerships go through bumps in the road. In recent months, ride-hailing firm Uber and its executives have been taking increasingly direct shots at its supposed robotaxi partner, Waymo, in what looks like a strategic split ahead of direct competition.

The two tech giants have a complex history, famously settling a high-stakes lawsuit in 2018 after Waymo accused Uber of stealing trade secrets. Despite this, they announced a multiyear partnership in 2023, allowing users in cities like Phoenix and Austin to hail a Waymo through the Uber app.

But behind the scenes, a different story is unfolding. Uber executives have been criticising Waymo's technology and deployment strategy, with one even sharing a video on social media of a "scary Waymo moment".

A hybrid future or a divided city?

Uber is trying to position itself as the essential bridge to an autonomous future, arguing that a "hybrid network" mixing human and automated drivers is superior to the AV-only approach of operators like Alphabet's Waymo. They claim this makes them a more scalable, equitable, and reliable partner for cities.

"Despite the incredible progress AVs are making around the world, and the enormous potential they hold, they are still far from capable of meeting the level of reliability and ubiquity that customers and cities expect," Uber CEO Dara Khosrowshahi said in February, adding that the limits of AV operators "only serve to reinforce the value of a hybrid network."

This argument was laid bare in a white paper, published by Axios, where Uber warned a "two-tier transportation system" could emerge if AV operations are left to pure market dynamics. The paper pointed to the Bay Area, where it said this two-tier system "is already real." It noted: "In San Francisco, for example, AV operations have expanded into some of the wealthiest neighborhoods while remaining absent from nearby cities like Oakland." While not naming Waymo, it is the only AV operator at that scale in the area.

'Why not Oakland?'

The criticism became more pointed at a panel in San Francisco this April. Danielle Lam, Uber's head of local California policy, put Waymo directly in the spotlight over its expansion choices.

"I don't want to put Waymo on blast here, but Waymo is permitted for Oakland. Oakland is a dense city. It does have a population similar to San Francisco that would be receptible to autonomous vehicles," Lam said. "Why not Oakland? Why Santa Monica? In terms of Uber's position on this, we are looking for equitable distribution."

In a statement to Business Insider, an Uber spokesperson insisted the company's position wasn't aimed at any one firm. "We will make no apologies for advocating for a hybrid future, which is both provably more efficient... and of course represents a better future for drivers than merely advocating for their replacement," the spokesperson said.

Slowing down the robot revolution

While Uber champions autonomy, it has also supported moves that could significantly slow down AV rollouts. In New York City, a key market, Waymo was dealt a blow when Governor Kathy Hochul withdrew a proposal to legalise robotaxi operations. A report in The New York Times linked the decision to efforts to win support from labour unions who oppose driverless cars.

Most revealingly, Josh Gold, a senior director at Uber, was quoted in a December report from CityLand as saying a proposed "moratorium and a study" on AVs, called for by the New York Taxi Workers Alliance, had a "lot of merit." He added: "We need to be thoughtful about a transition. Slowing down and figuring the right path is important."

The attacks on Waymo's technology have also become personal. After a Waymo robotaxi drove into a flooded road in May, triggering a software recall, Uber's own chief technology officer, Praveen Neppalli Naga, posted a video appearing to show a Waymo dangerously overtaking a bus in San Francisco. "Big fan of AVs, but perception ≠ judgment," he wrote. "Edge cases matter!"

As Waymo expands its services into new cities without Uber and even partners with its main rival, Lyft, the battle lines are being drawn. Uber appears to be playing a delicate game, embracing its AV partner in public while working to control the pace of the driverless revolution from behind the curtain.