• Waymo One's robotaxis could threaten Uber and Lyft drivers' earnings if they get access to airports.
• Airport rides are among the most profitable trips for human drivers.
• Waymo One is offering airport trips in Phoenix and is awaiting approval in other markets.

If Waymo One's robotaxis continue expanding to airports, human ride-hailing drivers could see their incomes take a big hit.

Airport trips are "incredibly important" for ride-hailing drivers, particularly those who work near cities with major airports, said Lindsey Cameron, an assistant professor of management — whose research focuses on AI and gig work — at Wharton School of the University of Pennsylvania. She added that airport pickups can be especially profitable because those rides often have higher fares, which are driven by strong customer demand.

"Those are the most lucrative rides," she said. "You've got a captive audience who wants to go home, and so they're willing to pay."

Many Uber and Lyft drivers have told BI their gigs are already less profitable than they were a few years ago — due, in part, to an increase in competition from both human and robot drivers. The threat of robotaxis further chipping away at their business has put some of them on edge.

Nicole Moore, a part-time Lyft driver and the president of the driver advocacy group Rideshare Drivers United, said that in the last couple of weeks, she's seen a significant uptick in concern from LA-based drivers about the impacts of robotaxis on their earnings. In November, Waymo One began offering rides to anyone in Los Angeles after previously operating a limited service with a waitlist.

"You put more drivers on the street — whether they're robot drivers or people — everybody makes less money," she said, adding, "We're thankful they're not in the airport yet."

Waymo One, which is owned by Alphabet, is the only company operating autonomous vehicles at US airports, Waymo told BI. It's also the biggest autonomous taxi service in the US: In October, the company said it was providing more than 150,000 weekly paid rides in Los Angeles, San Francisco, and Phoenix. Additionally, the company announced this fall it will offer rides to the public in the Atlanta and Austin markets early next year and in Miami in 2026.

While Waymo One airport trips are available in Phoenix —and the company has approval to begin pilot testing at the Austin airport — robotaxis are still restricted from airports in Los Angeles and San Francisco. In these cities, approval for airport rides would come from groups that oversee the airports' operations.

The experts BI spoke to said it's unclear if and when robotaxis will receive widespread approval for airport trips in the markets they're operating.

Spokespeople for Los Angeles World Airports and the Airport Commission for San Francisco International Airport told BI there is no estimated timeline for when Waymo One will receive approval, but the groups are monitoring the robotaxi's progress.

The LAWA spokesperson said the airport can experience significant curbside congestion and that for driverless taxis to gain airport approval, they would need to operate safely and efficiently and not impact the airport's current commercial and private vehicle operations. The Airport Commission spokesperson said driverless taxis would need to demonstrate the ability to operate on freeways and in communities near the airport and ensure they could safely meet the needs of customers.

Waymo is pushing for airport expansion in the US

Waymo told BI that it's providing thousands of trips each week to and from Phoenix Sky Harbor International Airport, the most popular destination for its riders in the city. The company also said it's in active discussions with San Francisco International Airport and Los Angeles International Airport about expanding its fleet to these airports, but didn't give BI a timeline for when it expects to receive approvals.

The company added that it was granted approval to provide robotaxi trips on freeways in San Francisco, Los Angeles, Phoenix, and Austin, but that it hasn't begun offering those rides to the public yet: Access to these trips is currently limited to Waymo's employees in San Francisco and Phoenix.

A spokesperson for Austin-Bergstrom International Airport told BI that the airport would monitor Waymo One's pilot testing before deciding whether to approve airport pickups.

Uber did not respond to Business Insider's request for comment, and Lyft said that its drivers have generally earned more on airport trips than on non-airport trips.

It's not just drivers who are feeling the pinch from Waymo One's expansions. GM announced on December 11 that it was retreating from the robotaxi business "given the considerable time and resources that would be needed to scale the business, along with an increasingly competitive robotaxi market."

Meanwhile, on December 5, shares of Uber and Lyft traded lower after Waymo announced it was expanding to Miami.

To be sure, Waymo isn't the only company rolling out robotaxis: Tesla and the Amazon-owned Zoox are also developing their own versions of a robotaxi.

Airport trips are some drivers' 'bread and butter'

Moore said that airport trips aren't as profitable for drivers as they used to be, but that they remain important.

"They have been our bread and butter for many, many years," she said.

Jason D., a 50-year-old driver in Phoenix, told BI he does more airport trips than any other type of ride — in part because he drives an Uber XL vehicle that has the space for luggage and multiple passengers. He said competing with Waymo One at airports and elsewhere has hurt his earnings.

"Driverless taxis are flooding an already competitive Phoenix market and taking money from human drivers," Jason D, who drives full-time for Uber and asked that his last name not be included for fear of professional repercussions, previously told BI. He added that Waymo One's cars also contribute to significant congestion at the airport because they don't know how to follow traffic officers' hand and voice commands.

Sergio Avedian, a part-time Uber and Lyft driver based in the Los Angeles area and senior contributor to the gig-driver-advocacy blog and YouTube channel The Rideshare Guy, told BI that airport drop-offs tend to be quick, pay relatively well, and often come with a tip.

In comparison, doing airport pickups can require drivers at major airports to wait in designated lots until a passenger books a ride. Avedian said this process can be frustrating, but that airport pickups often pay better than drop-offs because the fares are higher — which is why some drivers think they're worth the wait.

"You have a chance of maybe catching a 'unicorn,'" he said, referring to the highest-paying trips. He added that many airport riders are business travelers who can expense their trips and are therefore less likely to balk at a high fare or not tip.

While robotaxis are already operating in the LA market, Avedian isn't overly concerned about robotaxis impact on drivers' earnings in the short term. But he knows the clock is ticking.

"Long-term, definitely it's going to be a threat, and that's why we suggest everybody not treat Uber and Lyft driving as a career," he previously told BI.

If more airports approve robotaxis, Moore said she hopes riders will value the customer service humans provide.

"Customers often expect you to put their luggage in the trunk — is the robotaxi going to do that?"

We want to hear from you. Do you work in the gig economy? Please fill out this form.

Correction: December 13, 2024 — An earlier version of this story misstated the number of weekly paid rides Waymo provided. It was more than 150,000, not 100,000.

• Culdesac Tempe, a car-free neighborhood in Arizona, opened in 2023.
• Millennials and Gen Zers are paying more to live in walkable communities.
• I toured the carless neighborhood and found a walkable community with micro-retailers.

I'm a New Yorker who doesn't drive, and I've always felt like I couldn't move without a license. However, on a recent trip to Arizona, I found I was wrong.

Many millennials and Gen Zers don't want to depend on cars anymore. According to a 2023 study by the National Association of Realtors, they're paying higher prices to live in walkable communities.

Hence, the rise of walkable neighborhoods like Culdesac Tempe in Arizona, the self-proclaimed "first car-free neighborhood built from scratch in the US."

Cars are banned from the 17-acre block in the Phoenix suburb that opened in 2023. As of April 2024, Culdesac had 200 residents, and eventually, they hope to have 1,000, a company representative told Business Insider.

I stopped by the car-free neighborhood for a tour of the block and thought it felt like an urban oasis in the Phoenix suburb.

Culdesac is in the greater Phoenix area.

Culdesac sits on the east side of Tempe, a suburb roughly 10 miles from Phoenix, also home to Arizona State University.

I recently got a private tour — and the chance to chat with the CEO.

During my visit, I met with CEO and cofounder Ryan Johnson. After years of working in the real estate and transportation industries — and traveling to walkable places worldwide — he was inspired to create a neighborhood free of cars.

From New York City to Budapest, Johnson said his travels launched a passion for cities.

"I saw those places and said, 'Wow, this is a much better way to build a city — with thoughtful architecture, great transportation systems,'" he told BI.

Johnson added that developments in the transportation industry, from ride-share apps to public transit systems and electric bikes, have made living car-free possible in places like Arizona.

Johnson, who grew up in Phoenix and currently lives at Culdesac, hasn't had a car in 14 years.

All around the property, I spotted electric bikes and scooters.

Visitors and delivery drivers can park their cars at Culdesac, but residents cannot.

The company representative told BI that for residents with cars, "it's regulated through their lease agreement that they won't park on-site or on any public streets within 0.25 miles."

Some residents park their cars elsewhere in Tempe, while others, like Johnson, don't have a vehicle. Residents get around on foot, bicycles, electric bikes and scooters. The neighborhood has more than 1,000 bike parking spots.

One Culdesac resident previously told BI that living without a car can be challenging outside the neighborhood, as the surrounding city was built for vehicles.

However, according to the company's website, Culdesac provides residents with a mobility package worth almost $3,000 annually to make transportation easier. It includes a complimentary Valley Metro pass for the light rail that goes through Phoenix and Tempe and discounts on ride-share apps like Lyft and Waymo, a self-driving cab service.

My tour began in the plaza.

The plaza, located across from the neighborhood light rail stop, is the communal center of Culdesac. It's marked by a sculpture by artist Matthew Salenger that doubles as a canopy.

Here, there are games, shaded tables, and weekly events.

Thursday nights at Culdesac light up with a public outdoor night market called Little Cholla. The weekly event features live music, local vendors like food trucks, and dancing.

There's also a two-story gym.

A two-story building in the plaza with giant windows houses the neighborhood fitness center. It has workout classes and is lined with equipment.

Across from the plaza, there are local shops run by residents.

From thrifted clothing to unique dishware and candles, there's plenty of local shopping at Culdesac.

According to the company's website, there are more than a dozen micro-retail shops, including a market, a laundromat, a medical spa, an art studio, and a plant shop.

These micro-retailers have the option to live in their workspace.

The company representative told BI that the small-business owners at Culdesac are residents, and some even live in their stores thanks to a zoning permit that allows them to do so.

All the stores have kitchens and bathrooms, and some have bedrooms.

Steps from the plaza, the neighborhood has a restaurant with outdoor seating.

In April 2023, Culdesac's Cocina Chiwas opened. It's a family-owned Mexican restaurant serving Chihuahuan cuisine.

As I strolled the communal paths, I noticed that Culdesac didn't feel as hot as the surrounding streets. That's because there's no asphalt on the property.

It's no secret that the Phoenix area is hot — sometimes dangerously so in the summers. So Culdesac was built to keep pedestrians cool without asphalt — a road material that gets hotter in the sun.

In the residential areas, the walkways are narrow.

Culdesac intentionally placed the buildings close together to create as much shade as possible.

The buildings' color is also no accident. Culdesac chose white because it reflects sunlight rather than absorbs it.

Between residential buildings, there are courtyards with grills, tables, hammocks, and firepits.

More than half of the entire property is open, landscaped space.

Culdesac has apartments ranging from studios to three-bedroom floor plans.

Culdesac currently has 172 units. More will open in the fall, and the neighborhood will eventually have 760 units.

Studios start at $1,300 a month, one-bedrooms are $1,400, two-bedrooms are $2,100, and three-bedrooms are $2,900 monthly.

On the outer rim of Culdesac, there's a bike shop with tune-up services.

Archer's Bike Shop sells manual and electric bikes. And Culdesac residents get complementary services and product discounts.

Culdesac seems like a place where people can live car-free and get to know their neighbors.

After my visit to Culdesac, I chatted with Brad Biehl, a 24-year-old resident from Colombus, Ohio. Biehl has lived in the neighborhood for six months. He said one of the best parts of living there is the sense of community.

"We're usually in environments where we walk from our door to our car and from the car into the place," Biehl said. "But here, to go anywhere, I usually pass at least two or three of my neighbors, even when I'm just walking to the light rail right around the corner."

Biehl added that he's optimistic about the future of Culdesac when more residents and retailers come in.

"While there are still not a ton of people here yet, there's way more going on than I would've expected there to be," he told BI. "The number of serendipitous interactions that have taken place with the limited number of residents makes me super excited for what people will experience here."

• Uber and Lyft drivers in Phoenix and LA said that driverless taxis are hurting their earnings.
• They said Waymo One robotaxis are making their gigs even more competitive.
• Regulatory hurdles and safety concerns could slow the growth of the robotaxi industry.

Some Uber and Lyft drivers said the driverless taxis operating in their markets are driving down their earnings.

Jason D, a 50-year-old Uber driver based in Phoenix, told Business Insider it's become harder to make money in recent years due to increased competition with human drivers, lower fares, fewer tips from riders, and higher operating costs. Now, he said the rollout of Waymo One robotaxis has made this problem even worse.

"Driverless taxis are flooding an already competitive Phoenix market and taking money from human drivers," said Jason, who drives full-time and asked that his last name not be included for fear of professional repercussions.

Several companies are competing for a share of the US robotaxi market. However, Waymo One, Alphabet's autonomous taxi service, announced in August that it was providing more than 100,000 paid rides weekly in Los Angeles, San Francisco, and Phoenix. Waymo One also plans to expand to Atlanta and Austin early next year and will be facilitated through the Uber app. While the robotaxi industry could be slowed by regulatory hurdles and safety concerns, ride-hailing experts previously told BI that growing adoption would likely hurt Uber and Lyft drivers' earnings in the years to come. Some drivers told BI this is already happening.

To be sure, it's unclear how much robotaxis like Waymo One's are currently impacting drivers' earnings. Carl Benedikt Frey, a professor of AI and work at the Oxford Internet Institute, previously told BI there's little evidence that robotaxis like Waymo One have had a significant impact on Uber and Lyft drivers' earnings so far. But as more robotaxis hit the road, and fare prices come down, he said he would expect drivers' income to take a hit.

"As the technology gets better and cheaper, drivers will feel it in their wallets," Frey said. "We've seen this movie before: When Uber first showed up, it reduced traditional taxi drivers' earnings by about 10%."

Waymo and Uber did not respond to BI's request for comment. In February, an Uber spokesperson told BI that the company hadn't seen any significant impacts on drivers' earnings in Phoenix and Las Vegas, the two cities where Uber had autonomous vehicle partnerships at the time.

A Lyft spokesperson did not respond to BI's question about the impacts driverless taxis could have on ride-hailing drivers but said the company's goal is to build a hybrid network of human drivers and autonomous vehicles. Additionally, Lyft partnered with Mobileye to roll out autonomous vehicles on the Lyft network.

Restrictions on robotaxis could help reduce competition

John, a 43-year-old Uber and Lyft driver based in Phoenix, said he said he thinks Waymo One's robotaxis have hurt his earnings. He sometimes asks his passengers about their experiences using driverless taxis to get a better understanding of his competition.

He said Waymo One autonomous vehicles compete with him for rides and are sometimes cheaper than Uber and Lyft trips, which he thinks could deter passengers from using traditional ride-hailing services. John's identity is known to BI but has been withheld for his fear of professional repercussions.

Comparing the costs of Waymo One against Uber or Lyft is difficult because prices vary by market, length of trip, promotional offers the passenger may have, and whether the client tips a human driver.

There is some relief for human drivers: Restrictions on where robotaxis can drive could help limit the impact on ride-hailing drivers.

Brad, a full-time Uber driver based in Los Angeles, said he doesn't feel too threatened by Waymo One robotaxis in the city because they primarily offer shorter rides that he doesn't consider to be very profitable.

"I stopped picking up local rides a long time ago," said Brad, whose identity is known to BI but has been withheld for his fear of professional repercussions.

He added the most profitable rides tend to be airport trips — specifically when he picks up passengers from their terminals — and robotaxis aren't allowed at the airport. Waymo One airport trips are still restricted in Los Angeles and San Francisco but are available in Phoenix.

Nicole Moore, a part-time Lyft driver and the president of the driver advocacy group Rideshare Drivers United, previously told BI that trips to and from airports are many drivers' "bread and butter." She said that competition from robotaxis for these rides would be a concerning development for drivers.

A key factor in the success of robotaxis could be whether riders feel comfortable without a human driver. In Phoenix, Jason said that robotaxis are sometimes a "hazard on the road."

"They often cut me off," he said. "I have seen them signal left and right before making a sudden turn across multiple lanes of traffic."

In June, Waymo One recalled 672 of its driverless taxis after one hit a utility pole in Phoenix — the company said there were no passengers in the vehicle.

Jason said some riders he speaks with are comfortable with driverless cars or even think they could be safer than those driven by humans. But he's firm in his stance.

"I am fundamentally opposed to driverless rideshare because I do believe my income is being impacted," he said.

We want to hear from you. Do you work in the gig economy? Please fill out this form.

• TSMC's Phoenix chip factories likely won't eliminate US dependence on tech from Taiwan.
• Experts told BI that TSMC's most advanced chips will likely continue to be produced in Taiwan.
• Taiwan's central role in a crucial global industry could help it secure support from the US.

Some US businesses are likely to continue depending on TSMC chips made in Taiwan for the foreseeable future, even as the company builds factories in Arizona.

On November 15, the Biden administration announced that the Commerce Department had awarded TSMC — the world's leading chipmaker — with up to $6.6 billion in funding to aid the construction of three chip factories in Phoenix. The first factory is expected to begin full production levels in early 2025.

In a press release, the Biden administration said the announcement was "among the most critical milestones yet" in the implementation of the CHIPS Act. Supporters of the law hope it will create US jobs, secure supply chains, and make the US less reliant on advanced chips from Taiwan — which faces the possible threat of a Chinese invasion. TSMC produces an estimated 90% of the world's advanced chips, which power everything from iPhones to cars.

While TSMC's Phoenix factories are expected to boost semiconductor chip production in the US, the company isn't making its most advanced chips stateside, industry experts told Business Insider.

Jeff Koch, an analyst at the semiconductor research and consulting firm SemiAnalysis, told BI that chips made in TSMC's US factories are expected to be one to two levels behind the company's more advanced Taiwan-made chips. For example, chips produced using 4 nanometer (nm) technology are expected to be made in the first Phoenix factory, while TSMC's Taiwan factories are already producing chips using 3nm technology. The smaller the nanometer number, the more transistors manufacturers can fit on a chip, making it more powerful and energy-efficient.

While 3nm chips are expected to be produced in TSMC's second Arizona factory — which is slated to begin full production in 2028 — Koch said this would likely come after the production of 2nm chips begins in Taiwan, which is estimated to happen next year, according to TSMC.

Stephen Ezell, the vice president for global innovation policy at the Information Technology and Innovation Foundation, told BI that by the time TSMC's Phoenix factory starts making 2nm chips, he'd expect the company to be producing even more advanced chips in Taiwan.

"The United States will be dependent on chips from Taiwan for a long time to come," he said. "Even if the CHIPS Act is wildly successful, it'll barely get the US back to 17% to 20% of global chip production." The US currently produces about 10% of the world's chips.

The Department of Commerce told BI that as TSMC's Arizona fabs become operational, it expects to see the production of TSMC's most advanced chips transition into the US over the coming years.

TSMC declined to comment on whether the company's most advanced chips will continue to be produced in Taiwan.

Keeping TSMC's most advanced chips in Taiwan gives the island leverage

Companies that prefer to use the most cutting-edge technology — like Nvidia, Apple, Qualcomm, and AMD — will likely continue to source chips from Taiwan, said Chris Miller, a nonresident senior fellow at the American Enterprise Institute who focuses on semiconductors.

"I think TSMC's plants in Arizona are significant, but given current policies and investment trends, the US will be using large volumes of chips made in Taiwan for many years into the future," added Miller, who is the author of "Chip War: The Fight for the World's Most Critical Technology,"

TSMC's most advanced chips are made first in Taiwan, in part, because that is where the company conducts its research and development — which makes it easier to roll out more sophisticated technologies. Additionally, keeping that level of production in Taiwan could help the island retain its essential role in the chipmaking industry, which is crucial to the global economy, Koch said.

He added that this dynamic could make the US more likely to provide Taiwan with military support if China invaded.

"It's very unlikely that the Taiwanese government would allow TSMC to build its most advanced fabs in the US without a few years' lag," he said, adding, "This is Taiwan's most valuable strategic capability. Without it, extracting a US security guarantee or support from the Trump administration goes from hard to impossible."

William Alan Reinsch, a senior advisor at the Center for Strategic and International Studies, a national security think tank, told BI the Biden administration's goal was to boost domestic chip production — not to completely erase US businesses' reliance on foreign-made chips.

What's more, efforts to develop and foster the US semiconductor industry could help protect America's supply chains from geopolitical events, even if some US businesses continue to source chips from Taiwan.

Do you work in the US semiconductor industry? Reach out to this reporter at [email protected].

• Jessika Roso Malic got a job as a stewardess for Emirates in 2010.
• She moved from Phoenix to Dubai and worked there for six years.
• Malic said life in Dubai was glamorous, but she got burned out at work and missed parts of Phoenix.

This as-told-to essay is based on a conversation with Jessika Ros Malic, a former Emirates stewardess from Phoenix, about living in Dubai. It's been edited for length and clarity.

Moving to Dubai was a whirlwind. In 2010, I heard that Emirates was hiring. After going through the interview process, they notified me of acceptance in April, and I moved to Dubai in August with my life packed up in two and a half suitcases.

It was my first time over the Atlantic.

There were so many international businesses and restaurants that it was almost as if the entire globe was in one city. That's what I loved most about Dubai — the many different cultures in one place.

Living there was a crash course in global interactions. But I moved back home to Phoenix permanently in 2017.

I had a glamorous life in Dubai and loved traveling

Upon arriving, Emirates housed me in an apartment. I had two and a half months of intense training before starting a hectic work schedule. My monthly schedule was only released at the end of each previous month. This meant I could only plan my life for a month at a time, and I was rarely in town.

When I was home, I spent much of my time socializing. Working 11-hour shifts was difficult, and back then, all there was to do in Dubai was party, go to bars, and shop.

You could go anywhere and meet people from, say, 10 countries speaking 15 languages. It's a fascinating city because only about 20% are local nationals, and 80% are a complete mix of expats of other nationalities. Temperature-wise, Dubai is comparable to Phoenix, but Dubai is much more humid because of the ocean.

Once in a while, we'd go out to the desert.

Some things were better in Phoenix

I missed that there was much more to do in Phoenix besides nightlife, such as hiking, visiting nature preserves, camping, museums, festivals, and more.

In Dubai, I found it impossible to get anything done over the phone. There was also no address system back then. I had no idea how their local mail system worked and never learned how to mail something to anyone living there.

We took taxis everywhere as they were affordable, and the lack of addresses meant you had to know exactly where you were going. If it wasn't a well-known location or destination, I often had to tell the driver to head to landmarks or direct them exactly where to go.

We're so spoiled in Phoenix. We live on a grid, so you can easily get from one place to another. In Dubai, it's like someone took some crayons, swirled them on a page, and said, "This is the highway system."

My job gave me perks, but the physical toll was too much

Luckily for me, housing was provided for Emirates crew members. Another perk is the live-out allowance — a stipend for living away from home. Because of Emirates, Dubai was affordable for me.

At the same time, I was sick every month and got food poisoning at least three times a year. The physical toll made me tired of flying, and I just wanted to go home. I met my husband in Dubai and married in 2013. He was also ready to move, so we explored purchasing property in Phoenix.

Moving back to Phoenix made me happy

We bought our first house during a visit back home to Phoenix in 2015, although we didn't move back permanently until early 2017. It was located in South Phoenix in a new development and was a dream find.

Our home was 2,500 square feet, close to the freeways, had a three-car garage, and had four bedrooms. We paid $187,000 cash with my husband's parents' help. I loved that house, but we eventually sold it after we divorced this year.

I miss my glamorous days of traveling and living in Dubai, but I'm happy to be settled and close to friends and family in Phoenix. These days, I'm working as a communications and events manager at a nonprofit, and the work is satisfying.

If you moved out of the US for a dream job and want to tell your story, please email Manseen Logan at [email protected].