Amazon’s (AMZN) robotaxis have officially hit the streets of Las Vegas today, marking a major milestone for its autonomous vehicle unit, Zoox. After years of testing, Zoox is offering free rides in its driverless shuttles along select routes on the Strip.
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The electric robotaxi is unlike a traditional car. It has a boxy shape, can drive in both directions, and does not have a steering wheel or pedals. Also, the vehicle has two rows of seats facing each other, with floor-to-ceiling windows, making it easy to have a conversation and enjoy the view. It can carry up to four passengers at a time.
All rides are free during the initial launch phase. Passengers can book through a special app and get help from Zoox staff at pickup and drop-off spots.
The company plans to begin charging fares once it receives regulatory approval.
Zoox Needs to Catch Up
Zoox is the first U.S. robotaxi to offer rides in a vehicle designed without traditional driver controls. This was made possible by an exemption from federal vehicle safety standards granted by the National Highway Traffic Safety Administration (NHTSA) last month.
However, being a late entrant into the market, Zoox needs to play catch-up with its rivals. Alphabet’s (GOOGL) Waymo launched its first public service in Phoenix, Arizona, in 2020 and now conducts over 250,000 paid rides per week across five U.S. cities. Tesla (TSLA) also recently began a limited robotaxi service in Austin, Texas.
Scaling Up for the Future
Moving to expansion plans, the company plans to follow its Las Vegas debut with an early rider program in San Francisco by the end of the year. Further, Zoox is already testing in Los Angeles, Atlanta, and Seattle, and plans to expand to Austin and Miami next.
To support its growth, Zoox opened a new manufacturing facility in Hayward, California, aiming to produce up to 10,000 vehicles per year.
Is Amazon a Buy, Hold, or Sell?
Turning to Wall Street, AMZN stock has a Strong Buy consensus rating based on 45 Buys and one Hold assigned in the last three months. At $263.95, the average Amazon stock price target implies a 13.61% upside potential.
