Amazon's autonomous vehicle unit, Zoox, received the first U.S. approval for paid robotaxi services using vehicles built without steering wheels or pedals. The regulatory clearance from the National Highway Traffic Safety Administration allows Zoox to deploy its purpose-built autonomous vehicles on public roads for commercial operations. Amazon stock rose 4.6 percent Thursday, trading at $237.04, reflecting investor optimism on the news.
The NHTSA approval grants Zoox an exemption from certain federal motor vehicle safety standards designed for human-driven cars. Zoox's vehicle is a compact, bidirectional robotaxi with four inward-facing passenger seats and no driver controls. The design required a specific waiver because existing regulations presuppose a human driver. The company has tested its vehicles on private tracks and public roads in Las Vegas, Foster City and Seattle for more than two years.
The approval places Zoox ahead of key competitors in commercial deployment of fully autonomous, purpose-built vehicles. Rivals Alphabet's Waymo and General Motors' Cruise operate robotaxi services but use modified production vehicles that retain steering wheels and pedals. Waymo, an Alphabet subsidiary, traded at $333.12, down 1.1 percent Thursday. Cruise recently faced regulatory setbacks, creating an opening for Zoox to gain market share in a fast-moving sector.
For Amazon, the approval creates a direct path to monetizing its investment in Zoox, acquired in 2020 for an estimated $1.2 billion. The global robotaxi market is projected to reach tens of billions of dollars within the next decade, offering a new revenue stream for the company. Amazon can use its logistics network and Prime subscriber base to integrate autonomous ride-hailing services. The autonomous vehicle program could also generate data for Amazon's AI and mapping initiatives.
Zoox plans to begin paid public robotaxi services in Las Vegas and Foster City, California, later this year, initially in geo-fenced areas. The company will operate with safety drivers present in certain situations, gradually expanding to fully driverless operations as it collects more data and secures additional state-level permits. Further expansion into other U.S. cities depends on local regulatory approvals and dedicated charging infrastructure.
