Amazon's Zoox Launches Free Robotaxi Service In San Francisco To Compete With Waymo

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(RTTNews) - Amazon (AMZN) has begun rolling out its Zoox robotaxi service in San Francisco, offering free rides in select neighborhoods as it works to catch up with Waymo's head start in autonomous ride-hailing.

The service is limited to people on a waiting list and uses Zoox's distinctive steering-wheel-free vehicles. The move comes shortly after Zoox launched a similar service on the Las Vegas Strip.

Zoox isn't charging riders yet, unlike Waymo, which has been operating paid robotaxi services in Phoenix for five years. Offering free trips is a key step for Amazon's autonomous-driving push, which began when it bought Zoox for $1.2 billion in 2020. The company will need approval from California regulators before it can charge fares in San Francisco.

Waymo has expanded aggressively across California and into cities like Atlanta and Austin, with plans for New York, Washington DC, and London next year. It has also begun running robotaxis on highways in San Francisco, Los Angeles, and Phoenix, and just announced plans to reach five more US cities, though rides there won't be available until next year.

Amazon is preparing its own broader rollout. Zoox plans to expand to Austin and Miami, and Amazon has converted a former bus factory in Hayward into a high-tech production site meant to eventually produce up to 10,000 robotaxis a year.

Wednesday AMZN closed at $222.69, up 0.06%, and now trades after hours at $224.31, up 0.73%, on the NasdaqGS.