Amazon is accelerating its push into autonomous transportation, unveiling plans to mass-produce self-driving vehicles through its Zoox division. With a new 220,000-square-foot facility in Hayward, California, the Amazon robotaxi factory marks a major move in the race to commercialize robotaxis — putting Amazon in direct competition with leaders like Waymo and Tesla.

Zoox: Amazon’s $1.2 Billion Bet on Autonomous Vehicles

Amazon (NASDAQ:AMZN) acquired self-driving startup Zoox in 2020 for $1.2 billion, signaling its serious interest in the future of autonomous mobility. Zoox’s mission is to create a fully autonomous, bidirectional vehicle — without a steering wheel or driver’s seat — built from the ground up specifically for ride-hailing.

Production is currently modest at the new Amazon robotaxi factory, with about one vehicle rolling off the line each day. However, Zoox plans to scale operations significantly, aiming to build up to 10,000 vehicles annually by 2027.

Waymo and Tesla: Still in the Lead for Now

While Zoox is just getting started, Waymo, a subsidiary of Alphabet Inc. (NASDAQ:GOOGL), has a clear head start. Waymo began offering autonomous rides in Phoenix nearly five years ago and now operates in San Francisco, Los Angeles, and Austin. It recently filed to begin testing in New York City.

Tesla (NASDAQ:TSLA), led by Elon Musk, remains a wildcard. Musk once promised 1 million robotaxis by 2020. That goal hasn’t materialized, but Tesla is expected to debut a limited robotaxi rollout in Austin soon — though Musk has reportedly delayed it due to safety concerns.

Inside the Amazon Robotaxi Factory

Located just 17 miles from Tesla’s Fremont facility, Zoox’s factory stands on what used to be a bus manufacturing plant. The Hayward site now includes a 21-station assembly line where Zoox’s unique, carriage-style robotaxis are built and tested.

The Amazon robotaxi factory sources about half its vehicle components from outside the U.S., though the company emphasizes that all final assembly happens on American soil. Zoox believes each vehicle can operate for around 500,000 miles over five years, depending on the city and demand.

Strategic Rollout Plans

Zoox will begin passenger services later this year in Las Vegas, followed by San Francisco in 2026. The company is also targeting markets like Miami, Los Angeles, and Atlanta. In partnership with Resorts World, Zoox will offer initial rides to hotel guests as it continues testing.

A recent incident during a San Francisco test — involving a minor collision with a scooter — prompted Zoox to issue a voluntary recall for a software update. No injuries occurred, and the event hasn’t derailed plans.

Can Amazon Catch Up?

Waymo has already provided over 10 million paid autonomous rides. Zoox has none — yet. Still, Amazon’s resources, tech talent, and vertically integrated manufacturing via the Amazon robotaxi factory give it a strong foundation to compete.

Zoox plans to operate between 500 to 1,000 robotaxis in smaller cities and up to 2,000 in major metro areas. Unlike Waymo, which uses modified existing cars, Zoox’s design is fully custom — optimized for comfort, space, and safety.

The Road Ahead for Robotaxis

The autonomous vehicle industry is reaching a pivotal moment. As infrastructure, regulation, and public trust evolve, companies like Amazon, Waymo, and Tesla are jockeying for leadership. With mass production on the horizon, the Amazon robotaxi factory represents more than just a factory — it’s a signal that robotaxis are getting real.

As Zoox ramps up production, 2025 could be the year we see Amazon shift from tech giant to mobility leader.

Featured Image: Megapixl©Wolterk

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