When it comes to the race to dominate the future of the robotaxi industry, no company is moving faster than Waymo. The autonomous vehicle company, which is already operating in major cities like Austin and Los Angeles, has applied for a permit to test its self-driving fleet in New York City — the most congested urban area in the country.

New York City, which has not yet approved fully autonomous ride-hailing services, will require Waymo to convince both lawmakers and the public why it should be allowed to operate within the city’s limits.

If granted the testing permit — which would still require a human safety operator in the passenger seat — New York could become a valuable proving ground for Waymo. Success in such a complex and crowded environment could strengthen the company’s case for expansion into less dense cities like Atlanta and Washington, D.C. The data collected during testing will help improve the performance of Waymo’s fleet and reduce its margin of error.

Following the announcement, shares of Uber and Lyft dipped, as investors anticipate that Waymo’s entrance could threaten their market share in one of their most profitable regions. While the widespread shift from human-operated ride-hailing services to fully autonomous taxis may still be a few years away, investors are becoming increasingly wary of the rapid pace at which robotaxi services are advancing in major U.S. cities.