Amazon plans to build up to 10,000 robotaxis each year by 2027 at a 220,000-square-foot factory near Silicon Valley. The move comes as it challenges Waymo’s dominance in the autonomous cab industry and as Tesla joins the self-driving taxi competition.
New era of robotaxis
The announcement of the production facility on Wednesday, June 18, presents a big step in Amazon’s move toward pioneering vehicle technology. An effort that began in 2009, when rival Waymo started a secretive effort within Google.
Amazon aimed to enter the self-driving cab business five years ago when it invested $1.2 billion in startup company Zoox. The company plans to begin taking riders in Las Vegas later in 2025, before expanding its service to San Francisco afterward.
Waymo’s head start
Amazon will use Zoox as the vehicle brand for its taxi service, positioning it in direct competition with Waymo. Waymo got a head start on the competition by introducing robotaxis in Phoenix nearly five years ago and began charging riders in San Francisco in 2023.
Waymo has since expanded to Los Angeles and Austin, Texas. Company officials say it has performed more than 10 million paid rides, while other companies, like Amazon and Tesla, are still breaking into the market and figuring out how to mass produce an expansive fleet.
Amazon’s ambitions
Amazon now believes it has addressed that problem with the new Zoox production plant that is reportedly the size of three-and-a-half football fields in Hayward, California. The facility is roughly 17 miles from a Tesla plant that produces electric vehicles that billionaire owner Elon Musk said will ultimately be able to operate without a driver.
Zoox currently builds just one robotaxi per day at its new high-tech facility, where vehicles move along a multi-station assembly line. However, officials said they aim to produce three vehicles an hour in the future.
By 2027, Zoox said it will manufacture 10,000 robotaxis each year in Hayward for a fleet that will include major cities like Los Angeles, Miami, and Atlanta. While Zoox assembles the vehicles in the United States, the company sources roughly half of the parts from outside the country.
Waymo’s growth
Waymo said it also expects to move its operations to Atlanta and Miami, and announced on Wednesday that it intends to begin testing its robotaxis in New York City.
“It’s an exciting time to be heading on this journey,” Zoox CEO Aicha Evans told The Associated Press during a tour of the new factory.
How Zoox intends to take the lead
While Zoox remains far behind Waymo, it is banking on pulling in passengers with seating for up to four people and a carriage-like ride. Waymo, on the other hand, operates its self-driving taxis through well-known automakers, which resemble cars operated by human drivers.
As testing of Zoox’s robotaxis continues in Las Vegas, the company recently announced a partnership with Resorts World that offers rides to guests. Zoox is also running pilot programs in San Francisco, where Waymo already has a large footprint.
Sorting out issues
Zoox has also experienced some hiccups with testing in San Francisco. The company issued a voluntary recall to upgrade its self-driving technology after one of its robotaxis struck a person riding an electric scooter. The collision did not injure the person.
Tesla is also vying for leadership in the robotaxi market, with CEO Elon Musk repeatedly pledging to launch the world’s largest autonomous taxi service. Musk predicted in 2019 that Tesla would operate one million robotaxis by now. He’s since cooled his ambitions, instead opting for a phased rollout beginning with Tesla cybertaxis in Austin on Sunday, June 22, a date that may be subject to change, as Musk has cited potential safety concerns.
