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Amazon's Zoox Enters Paid Robotaxi Race

Financial Times Companies •
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Amazon's Zoox, acquired for $1.3 billion in 2020, will begin charging for rides in Las Vegas by late June as it competes with Waymo and Tesla in the robotaxi market. The self-driving startup has operated free services since launching last year but now seeks regulatory approval to convert to a paid model. Zoox represents Amazon's aggressive push into autonomous transportation with its custom-built, steeringless vehicle design.

Zoox's expansion strategy includes seeking federal safety exemptions while scaling production to three vehicles per hour. The company secured an Uber partnership bringing its service to the app in Las Vegas this summer and Los Angeles next year, though it plans to keep major markets like San Francisco exclusive to its own app. Zoox differentiates itself by designing its robotaxi from scratch rather than retrofitting conventional cars.

The move intensifies competition in autonomous ride-hailing as the Trump administration signals willingness to relax regulations. Waymo currently operates in 10 US cities and plans to quadruple its San Francisco service area. Zoox's pivot to paid rides marks a critical milestone in its journey from tech development to sustainable business model.