Amazon's self-driving car unit Zoox is going into high gear as it readies to introduce its first U.S. commercial robotaxi services. Next year, the company will open a new factory in California's Bay Area, according to the Financial Times. The new capacity will massively boost production levels and enable Zoox's larger vision for self-driving city mobility.

Now based in a smaller Fremont building, Zoox is poised to move beyond pilot projects into actual service. With operating and financial support from Amazon, the company is well-positioned as one of the leading players in the crowded autonomous space.

Purpose-Built Vehicles Specifically for Autonomy

Unlike other driverless car manufacturers that modify current models, Zoox manufactures cars from the ground up. It is a square, symmetrical vehicle with no steering wheel and pedals. Face-to-face, passengers ride inside a spacious cabin — a configuration intended for driverless transit.

This unique car design is all part of Zoox's vision to create a new type of ride-hailing experience. Co-founder of Zoox Jesse Levinson told FT in an interview that the company is preparing "to make hundreds and then thousands" of cars, ramping up from the two dozen units that are being tested in six U.S. cities.

Zoox Robotaxi to Launch in Las Vegas and San Francisco

The much-anticipated Zoox robotaxi service will debut in Las Vegas later this autumn, followed by San Francisco. Both cities provide high-density urban settings best for driverless transportation testing and rollout. The growth hub will facilitate these rollouts, also acting as an assembly base, fleet maintenance, and software support facility.

By launching in two large metropolitan areas, Zoox will establish public trust and accrue valuable performance information. The initial markets will pave the way for national rollout, introducing self-driving mobility to additional U.S. cities in the near term.

New Regulatory Ecosystem Facilitates AV Development

Zoox's growth comes at a time of greater leeway in the U.S. from federal regulators towards autonomous technology. These are recent government measures such as exemptions from specific safety requirements as well as relaxed regulations on accident reporting. Such relaxing of regulations would facilitate the deployment of robotaxi fleets at a faster pace.

However, safety is a concern. Zoox, and companies like Waymo and Cruise, have been questioned by federal regulators looking into the reliability and performance of autonomous vehicles. It will be crucial to navigate this complex regulatory environment as the industry continues to evolve.

Amazon's Investment Gives Zoox Strategic Edge

Amazon's purchase of Zoox in 2020 gave the start-up a significant fillip — not just financially, but operationally. Speculation is rife that in addition to ride-hailing, Zoox's platform can be used for autonomous delivery of packages, possibly supplementing Amazon's vast e-commerce network.

What sets Zoox apart from AV competitors is its vertically integrated strategy. Instead of selling its cars, the company will keep its own fleet of Zoox robotaxis. This end-to-end control lets Zoox be in charge of each phase of the passenger experience, from maintenance of the cars to in-app ride bookings.

No Drivers in a Future World?

Zoox robotaxi service is a groundbreaking step toward a world in which ride-hailing doesn't require a human driver behind the wheel. If its first public rollouts in 2025 go well, Zoox can be a trailblazer in a sector that's likely to transform transport in the coming decade.

With deep pockets, creative product design, and regulatory tailwinds, Zoox is creating not just a car — but an end-to-end autonomous mobility platform. Next year will be a test case, and everybody is waiting to see how the company executes its ambitious plan.