Facing intense pressure from Alphabet's Waymo and other rivals in the autonomous driving sector, Uber has formed an unexpected alliance with driver unions in an attempt to slow the rollout of robotaxis. The ride-hailing company, which once built its reputation on flouting regulations and aggressively lobbying against worker protections, now finds itself alongside organized labor, pushing to restrict autonomous taxi deployment in places like New Jersey and Washington, D.C.

Across the United States, Uber is advocating for a slower pace of autonomous vehicle deployment to ease the transition for its driver base. It is also urging regulators to require ride-hailing platforms to operate "hybrid networks" in which autonomous vehicles and human drivers work side by side. This stance marks a major shift for a company that was once the quintessential example of Silicon Valley prioritizing innovation over worker welfare, and which now sees its core business threatened by the very technology it once championed.

Uber laid out these arguments in a May policy paper, noting that driver earnings in Los Angeles and San Francisco have already declined as a result of Waymo's competition. The company's president, Andrew MacDonald, acknowledged the irony of the position. "When Uber was starting out, we were entirely focused on growth. We genuinely believed we were creating something valuable, and that was true, but we did not adequately consider the social consequences," he said when the policy report was released.

Manny Pastreich, president of the New York drivers' union 32BJ, described the unusual dynamic: "In some cases, we find ourselves aligned with Uber. We have pushed our demands as forcefully as we can... at the very least, we have slowed the next phase of autonomous vehicle deployment."

Competitors and those familiar with the company suggest that Uber's newfound focus on jobs and social issues is largely driven by self-interest. Uber has long invested in autonomous driving technology, but it lags far behind its primary rival, Waymo. Regulations mandating human-driver integration would prevent pure-play autonomous companies from bypassing Uber and operating directly through their own apps, a model Waymo has already adopted in multiple cities.

A former Uber executive explained: "For autonomous vehicles to achieve mass adoption, there will inevitably be pressure on driver livelihoods. Uber's goal is to survive this technological transition."

In 2020, Uber sold its internal autonomous driving unit for $4 billion. Since then, CEO Dara Khosrowshahi has faced pressure from investors to clarify the company's strategy on self-driving technology. Khosrowshahi has spoken about the trillion-dollar market opportunity represented by robotaxis, while maintaining that the technology has yet to erode Uber's market share. The company has since pivoted to a partnership model, committing more than $10 billion to vehicle procurement and investing in multiple autonomous driving firms. Robotaxi orders currently account for less than 0.5% of Uber's total bookings.

The former senior executive revealed that part of Uber's rationale for investing in multiple autonomous driving companies is to "fragment the market," thereby ensuring its app remains the aggregator for various service providers' ride-hailing orders and preserving its platform value.

On Wednesday, Khosrowshahi announced the company would cut approximately 3,300 jobs, around 10% of its global workforce, in an effort to streamline management and reallocate resources across the company.

Despite Uber's recent rhetoric favoring labor, deep-seated distrust remains between the two sides. Founder Travis Kalanick was notoriously aggressive, disregarding local transportation regulations and working systematically to dismantle the traditional taxi industry. Khosrowshahi has taken a softer approach, but the company still faces opposition from labor over driver benefits, wages, and the classification of drivers.

Uber's support has nonetheless helped advance policy favorable to drivers. In New Jersey, Uber has lobbied for a proposal requiring that, during a three-year pilot period, any platform offering robotaxi services have human drivers complete no less than 85% of its trips. Uber has also joined unions in opposing Washington, D.C.'s autonomous vehicle legislation, arguing that the proposed licensing system would exclude smaller platforms, including itself.

Uber maintains that addressing unemployment concerns is necessary to persuade legislators to allow autonomous vehicles on the road. This year, autonomous vehicle legislation has stalled in six U.S. states, primarily due to labor-related concerns.

Harry Hatfield, Uber's head of AI and autonomous vehicle policy, stated: "Developing a compromise that addresses safety, traffic congestion, and employment impact might be the only viable path for policy to move forward and pave the way for future deployment."

Waymo is also lobbying for policies favorable to itself. It opposes the so-called "hybrid operations network," calling it a "cure without a disease," given that it already operates alongside ride-hailing apps in many cities. The autonomous driving startup has also occasionally collaborated with labor groups, such as in securing airport access permits.

Pastreich, the 32BJ leader, said drivers remain wary of Uber's motives. In more than 20 U.S. states where autonomous vehicle deployment faces less resistance, including California, Nevada, and Texas, Uber has not stepped up to defend driver rights. "When Uber opposes autonomous vehicle deployment for its own strategic reasons, we will leverage that momentum," Pastreich added. "But I would never place my hopes on them. Never."