Amazon (AMZN) has officially entered the robotaxi sector, going head-to-head with rivals Alphabet (GOOGL) and Tesla (TSLA).
The entrance of Amazon in the area of self-driving taxis comes five years after the technology company paid $1.3 billion U.S. to acquire robotaxi company Zoox.
Currently, the robotaxi industry is dominated by Alphabet’s Waymo division, followed closely behind by Tesla.
Zoox is launching its first robotaxi trial in Las Vegas, Nevada and seeking regulatory approval to expand to other jurisdictions.
Analysts say Amazon has a lot of roads to cover to catch-up to Waymo, which has been offering driverless rides in the U.S. since 2020.
Earlier this year, Waymo said it surpassed 10 million paid rides, and the company now operates in five cities, with Dallas, Denver, Miami, Seattle and Washington, D.C. being added next year.
Tesla began testing a limited robotaxi service in Austin, Texas in June of this year, although with human supervisors on board.
Unlike Waymo and Tesla, Zoox’s electric robotaxi doesn’t resemble a car. There’s no steering wheel or pedals, and the rectangular shape has led some analysts to describe it as a “toaster on wheels.”
Zoox was founded in 2014, five years after Alphabet formed Waymo. Following Las Vegas, Amazon plans to debut a ride program in San Francisco, California by year’s end.
AMZN stock has gained 5% this year to trade at $230.33 U.S. per share.
