Amazon-backed (AMZN) Zoox has launched its self-driving taxi service in San Francisco. Starting Tuesday, people can sign up for free rides through the Zoox Explorer program by using the company’s app. Notably, this is Zoox’s second major rollout after launching in Las Vegas back in September. What makes Zoox stand out from other companies like Google’s (GOOGL) Waymo and Tesla’s (TSLA) Robotaxi is that its vehicles were designed from scratch to be fully driverless.
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In fact, there are no steering wheels or pedals inside. Instead, passengers sit on benches facing each other. Furthermore, the cars can drive in either direction since there’s no clear front or back, while switching between headlights and brake lights as needed. They’re also packed with cameras and sensors, and if they get stuck or face something tricky, Zoox staff can take control remotely. Still, the competition in autonomous driving is tough. For example, Waymo already has millions of self-driving miles logged and is expanding from San Francisco and Los Angeles to cities like Austin, Atlanta, and Miami.
It also recently took a big leap forward with highway driving. At the same time, Tesla’s robotaxi program, while still invite-only, is running in Austin and testing in Arizona. Moreover, Uber (UBER) announced a partnership with Lucid Motors (LCID) and autonomous tech company Nuro in July to launch a fleet of Lucid EVs equipped with Nuro’s self-driving software. Nonetheless, the industry is still in its infancy, and companies are working to figure out which type of autonomous technology will prove to be the most successful.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 42 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $296.64 per share implies 31.6% upside potential.
