Amazon’s subsidiary, Zoox, is poised to become a significant player in the autonomous vehicle market. The company is gearing up to manufacture up to 10,000 robotaxis each year at its new facility located near Silicon Valley. This move positions Zoox as a direct competitor to Waymo, currently a leader in the self-driving taxi sector. Tesla, under the leadership of CEO Elon Musk, also aims to enter this rapidly evolving market.

The unveiling of the 220,000-square-foot robotaxi factory signifies a new phase in Amazon’s foray into autonomous vehicle technology. Waymo’s journey began in 2009 as a secret project within Google, setting the stage for the current competitive landscape.

Amazon initially signaled its interest in the autonomous vehicle market five years ago with the acquisition of self-driving startup Zoox for $1.2 billion. Zoox plans to launch its robotaxi service in Las Vegas later this year, with subsequent expansion into San Francisco slated for the following year.

Zoox Gears Up to Compete with Waymo

Zoox, established in 2014, is working to catch up with Waymo, which has been operating robotaxis in Phoenix for approximately five years. Waymo began charging for rides in San Francisco in 2023 and has as expanded its services to Los Angeles and Austin, Texas. Waymo reports having provided over 10 million paid rides. Meanwhile,companies like Amazon and Tesla are focused on refining their self-driving technology and scaling their fleets.

“Its an exciting time to be heading on this journey,” Zoox CEO Aicha Evans said during a Tuesday tour of the robotaxi factory.

Amazon believes it has addressed fleet scaling with Zoox’s manufacturing plant in Hayward, California.The facility, equivalent to three-and-a-half football fields, is located approximately 17 miles north of a Tesla factory. Since acquiring the former bus manufacturing plant in 2023, Zoox has transformed it into a state-of-the-art facility for assembling and testing its unique, boxy vehicles along a 21-station assembly line. Currently, Zoox produces one robotaxi per day but aims to increase production to three vehicles per hour by next year.

Zoox intends to produce 10,000 robotaxis annually by 2027 at its Hayward plant, with plans to expand its fleet to major markets such as Miami, Los Angeles, and Atlanta. While the robotaxis will be assembled in the U.S., approximately half of the components are sourced internationally, according to company officials.Waymo also plans to expand into Atlanta and Miami and has recently applied to begin testing its vehicles in New York City.

“It’s an exciting time to be heading on this journey,” zoox CEO Aicha Evans said during a Tuesday tour of the robotaxi factory that she co-hosted with Jesse Levinson, the company’s co-founder and chief technology officer.

Distinct Approaches to Robotaxi Design

Zoox believes it can attract passengers with its carriage-like vehicles, which can accommodate up to four passengers. In contrast, Waymo integrates its self-driving technology into vehicles manufactured by othre major automakers, resulting in robotaxis that resemble conventional cars. Notably, Zoox’s robotaxis do not include a steering wheel.

Zoox is currently testing its robotaxis in Las Vegas and has partnered with Resorts World to provide rides to guests. The company is also conducting tests in san Francisco, where Waymo’s driverless cars have become a common sight. Recently, a minor collision between a Zoox robotaxi and an electric scooter rider in San francisco led to a voluntary recall to update the company’s self-driving technology. No injuries were reported.

Tesla also aims to compete with waymo, even though the timeline for Musk’s promise to create the world’s largest robotaxi service remains uncertain. While Musk’s current ambitions are more modest than his 2019 prediction of operating a fleet of 1 million robotaxis, he is now targeting a limited rollout of Tesla robotaxis in Austin. However, this date is subject to change due to safety concerns.

Zoox plans to operate 500 to 1,000 robotaxis in small to medium-sized markets and approximately 2,000 robotaxis in major cities. The company anticipates that each robotaxi produced at its Hayward plant will remain in service for about five years, covering approximately 500,000 miles.