Alphabet's robotaxi firm Waymo is considering ending its partnership with Uber due to a souring relationship between the companies, the Financial Times reported on Friday, citing people familiar with the matter.
Uber's shares closed down 4.3%.
Waymo has had internal conversations about ending its partnership with Uber, which was first announced in 2023, according to the report.
The companies have increasingly clashed over operational and commercial issues, according to the report.
Waymo has raised concerns about the cleanliness and routing of its vehicles, while Uber has criticised the sudden unavailability of Waymo vehicles during bad weather and argued that the partnership has "unsustainable financial terms," the FT reported.
The two companies were "pursuing diverging objectives," the FT report quoted a person familiar with the developments as saying.
The robotaxi firm has notified Uber it plans to enter these markets independently in January 2028, when their contract permits, the report said.
Waymo and Uber could not be immediately reached for comment. Reuters could not independently verify the report.
Late in June, the two companies ended their self-driving partnership in Phoenix, Arizona.
Waymo's vehicles are available on Uber's ride-hailing platform in Austin and Atlanta.
