Wow, then I don't know how they'd ever expand to NYC.
In most areas there's no such thing as a "safe place" that doesn't block traffic.
If there are sides of the road that aren't traffic (or bicycle) lanes, then they're taken up by parking.
Taxis, Ubers, delivery trucks -- literally everything just stops in the street (or bicycle lane) and traffic temporarily goes around it.
Everyone in NYC does it because they have to, but Waymo is obeying the law.