Amazon just revealed its robotaxi plans! The retail giant is charging into the self-driving space through Zoox, its autonomous vehicle arm, aiming to produce up to 10,000 robotaxis annually at a massive new facility near Silicon Valley. This bold move is Amazon’s bid to challenge Waymo’s lead and join in reshaping future transportation.
The new production plant, located in Hayward, California, spans 220,000 square feet — about the size of three and a half football fields. Zoox says this factory is the first of its kind in the U.S., built solely for the serial production of purpose-designed robotaxis.
Before diving into Zoox’s big plans, let’s take a quick look at what robotaxis are all about.
What Exactly Is a Robotaxi?
Robotaxis are fully autonomous ride-hailing vehicles powered by advanced artificial intelligence. Using a mix of LiDAR, cameras, and radar sensors, they can navigate city streets without a human driver. Most are classified as Level 4 autonomous, meaning they can handle all driving tasks within set conditions.
Since Waymo first launched driverless rides in Phoenix in 2020, the concept has shifted from a futuristic experiment to a real-world mobility solution. Now, falling hardware costs and better AI performance are making robotaxis more affordable. In fact, Goldman Sachs estimates the cost per robotaxi could soon drop below $50,000.
Zoox Eyes Vegas Launch in 2025
Amazon acquired Zoox in 2020 for $1.2 billion, and now the company is preparing to launch its first commercial service in Las Vegas later this year. San Francisco is next, followed by additional cities like Austin and Miami in the coming years.
While Waymo has already logged more than 10 million paid robotaxi rides in cities like Phoenix, San Francisco, Los Angeles, and Austin, Amazon’s Zoox is still playing catch-up. Tesla, on the other hand, is betting on a future where its EVs can self-drive using its own Full Self-Driving (FSD) software, though it has yet to officially roll out a robotaxi fleet.
Here’s what it looks like.
Inside Zoox’s High-Tech Production Factory: Flexible and Modular
The Hayward facility will handle all aspects of Zoox’s robotaxi production, from engineering and software integration to final assembly and quality testing. It is just 17 miles from Tesla’s nearby plant and sits close to Zoox’s Foster City headquarters, which promotes better teamwork between teams.
The facility is flexible by design. As robotaxi technology evolves, the plant can easily adjust to build newer models or add new features. As said before, at full capacity, the factory will be able to churn out over 10,000 robotaxis each year, scaling up as demand grows.
Secondly, Zoox follows a modular production model. From design to deployment, the company manages every part of the process. That means faster development, more quality control, and the ability to quickly scale production if needed.
Human Touch Still Matters
Even in a factory building autonomous vehicles, people play a vital role. Zoox uses robots for precision tasks like adhesive application and moving vehicles along the line. But much of the work, including assembly, is still done manually by skilled workers.
The facility is expected to bring hundreds of new jobs to the Bay Area. Zoox’s current team will help train newcomers as the company expands its operations. The company plans to hire more operators, logistics teams, and assembly experts as its services roll out to more cities.
Zoox Puts Sustainability in the Driver’s Seat
The new plant was designed with sustainability in mind. Zoox skips energy-hungry processes like welding and painting, reducing its overall power use. The company also avoids heavy in-house manufacturing by working with suppliers to preassemble key components, cutting emissions and waste.
To reduce its environmental footprint, Zoox has equipped its facility with low-emission, quiet logistics systems that minimize both air and noise pollution. This effort reflects the company’s broader commitment to sustainable manufacturing and cleaner urban transportation.
Robotaxi Market: Forecast, Trends, and Sustainability
According to a report by Markets and Markets, the global robotaxi market could grow from $0.4 billion in 2023 to $45.7 billion by 2030, at a rate of almost 92%. This shows Amazon’s robotaxi endeavors are on the right track.
If trends keep going, robotaxis might soon be profitable on a large scale. This is key for drawing in long-term investors and speeding up global use.
Furthermore, most people today want safer, easier, and stress-free ways to get around, and that’s driving the rise of robotaxis. Instead of dealing with the hassle of driving, they’re turning to autonomous rides for convenience. Robotaxis also cost less than traditional taxis or owning a private car, making them a more affordable option.
At the same time, trends like ride-sharing and Mobility-as-a-Service (MaaS) are making robotaxis even more appealing. Furthermore, these vehicles also support sustainability goals, ease traffic in crowded cities, and improve road safety by removing human error from the equation.
Moreover, strong government backing, new partnerships, and growing public trust in autonomous tech are helping this market gain momentum. As a result, the robotaxi sector is quickly moving from concept to reality.
So, Amazon’s Zoox is now officially in the robotaxi game. With a world-first production facility, a clear launch roadmap, and a focus on smart, sustainable growth, it’s gearing up to rival both Waymo’s early lead and Tesla’s ambitious promises. Thus, the race to dominate the streets with driverless rides has started shifting gears.
