Zoox Launches Commercial Service in Las Vegas, Amazon's (AMZN.US) Autonomous Driving Ambitions Materialize

Stock News12-16 14:18

Amazon.com's (AMZN.US) autonomous vehicle subsidiary Zoox is accelerating its commercialization efforts, with its self-driving taxi service now officially available to the public on the Las Vegas Strip. The company has also initiated plans for production expansion and multi-city operations across the U.S. Zoox highlights that it is currently the only company globally operating purpose-built autonomous taxis on public roads in compliance with regulations.

In Las Vegas, Zoox has been designated as the official ride-hailing service provider for T-Mobile Arena, marking its first partnership with a major sports venue. The new service will feature dedicated pick-up and drop-off lanes at the VIP entrance on the west side of the arena. This collaboration is seen as a transformative moment for T-Mobile Arena and the future of transportation in Las Vegas.

Notably, Zoox plans to launch paid passenger services in Las Vegas by early 2026, followed by a similar rollout in the San Francisco Bay Area later that year. The company has expanded its testing network from core West Coast regions to Washington, D.C., now covering eight cities: Las Vegas, the San Francisco Bay Area, Seattle, Austin, Miami, Los Angeles, Atlanta, and Washington.

As part of its California expansion, Zoox has announced public road mapping and testing in Los Angeles. The next phase involves scaling operations significantly—Zoox aims to increase its fleet size, establish a new production facility in the San Francisco Bay Area, and move beyond its current limited deployment of dozens of vehicles in select U.S. cities.

Industry experts view the Las Vegas Strip operation as a key showcase for Zoox’s unique symmetrical, bidirectional electric autonomous taxi design. Amazon acquired Zoox in 2020 for approximately $1.2–1.3 billion. Operating as an independent subsidiary under its original management team, Zoox’s technology is expected to enhance Amazon’s warehouse logistics and delivery network automation—particularly in last-mile delivery. Analysts suggest widespread adoption could significantly reduce Amazon’s overall logistics costs.

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