New Delhi, July 13 -- WASHINGTON - The partnership that once seemed to define the future of urban transportation is over. Waymo and Uber, which collaborated to offer autonomous rides through the Uber app in Phoenix and Atlanta, have parted ways. Now they are on a collision course in Washington, D.C., where a proposed law would reshape how driverless vehicles compete with human drivers across the American capital.

The bill, introduced by D.C. Councilmember Charles Allen, would impose costs that are hard to describe as anything other than barriers to entry. Any autonomous vehicle company wishing to operate in the city would face a $1 million application fee, a $5 million non-refundable permit, and a $0.15-per-mile tax on every completed tr...