Shares of Uber Technologies, Inc. (UBER) declined 4.31% during Friday's trading session, with selling pressure intensifying in the final hour after the Financial Times reported that Waymo is evaluating options to terminate its collaborative arrangement with the ride-hailing company.

The partnership, established in 2023, enabled the two companies to jointly deploy Waymo autonomous vehicles through Uber's platform in the Austin and Atlanta metropolitan areas. According to the Financial Times, which cited individuals familiar with the discussions, Waymo executives have held internal deliberations regarding the potential dissolution of their agreements with Uber. Reuters was unable to independently confirm these details, and representatives from both organizations declined to comment.

https://x.com/wallstengine/status/2080735221390127144

WAYMO EXPLORES OPTIONS TO EXIT PARTNERSHIP WITH $UBER : FT Waymo has held internal talks about ending its robotaxi deals with Uber as the companies clash over service quality, safety and robotaxi regulation. Waymo vehicles in Austin and Atlanta are currently available only… pic.twitter.com/pwyP4e44ZB — Wall St Engine (@wallstengine) July 24, 2026

Sources of Friction

Tensions between the autonomous vehicle company and the ride-hailing platform have escalated over recent months. Waymo has expressed dissatisfaction regarding vehicle maintenance standards and route optimization. Uber, for its part, has described the partnership's economic structure as "financially untenable" and raised concerns about Waymo's fleet becoming unavailable during adverse weather conditions.

A source with direct knowledge of the relationship told the Financial Times that both organizations are "moving toward incompatible strategic goals," language that suggests the collaboration may be nearing its conclusion.

Phoenix Collaboration Already Concluded

The companies quietly terminated their autonomous vehicle collaboration in Phoenix, Arizona in late June 2026, a region where they had previously coordinated operations. Waymo already operates its own commercial ride-hailing service, Waymo One, independently in Phoenix and San Francisco, giving it an established template for going direct in additional cities.

Waymo has formally communicated to Uber its intention to launch independent operations in both the Austin and Atlanta markets beginning January 2028 — the earliest date permitted under their existing contractual framework for competitive market entry. Rather than an abrupt exit, this signals a methodical disengagement with a predetermined timeline.

Competing Legislative Agendas

The conflict extends beyond operational matters. The Financial Times reported that both corporations are pursuing competing legislative agendas, advocating for robotaxi regulations that advance their respective strategic interests, frequently in direct opposition to each other.

Uber's strategy has centered on partnerships with external autonomous vehicle manufacturers, including Waymo, allowing the company to expand its robotaxi offerings without developing proprietary self-driving technology. That approach took shape after Uber sold its in-house autonomous driving unit, the Advanced Technologies Group, to Aurora Innovation in 2020, leaving the company reliant on third-party AV providers. Should Waymo proceed with the separation, Uber would need to strengthen ties with alternative AV providers or fundamentally reassess its technology partnership approach.

Shares of Alphabet Inc. (GOOGL), Waymo's parent company, gained 0.65% on Friday, contrasting with Uber's decline. For now, both companies continue partnership operations in Austin and Atlanta as the January 2028 deadline approaches.