Alphabet's (NASDAQ:GOOG) (NASDAQ:GOOGL) Waymo is reportedly exploring an exit from its Uber (NYSE:UBER) partnership, notifying the ride-hailing company it plans to enter Austin and Atlanta independently once their contract expires in January 2028.

Contract Notice Sparks Uncertainty Uber said it will continue offering Waymo rides in both markets until the deal lapses in May 2028, the Financial Times reported on Friday, citing sources.

The companies already parted ways in Phoenix in May, with Uber reportedly seeking a new robotaxi partner there.

The two companies are also lobbying for competing state policies, according to the report.

Uber is pushing for "hybrid networks" that would require human drivers to handle most rides, while Waymo backs high permitting costs that could limit smaller AV operators.