A Zoox L5 purpose-built self driving robotaxi drives through city streets in San Francisco, California, side view, June 2, 2025. (Photo by Smith Collection/Gado/Getty Images)
Hayword, California – Amazon is accelerating its entry into the autonomous vehicle market with a bold plan to produce up to 10,000 robotaxis annually at a sprawling new factory near Silicon Valley. The 220,000-square-foot facility in Hayward, California, marks a significant escalation in Amazon’s ambitions to challenge industry leader Waymo and other competitors, including Tesla, in the race to build the future of self-driving transportation.
The Hayward plant, occupying the equivalent of three and a half football fields, was formerly a bus manufacturing site before Zoox—Amazon’s self-driving car subsidiary acquired in 2020 for $1.2 billion—transformed it into a high-tech hub. Zoox has been assembling its uniquely designed, boxy robotaxis along a 21-station assembly line and currently produces about one vehicle per day. The goal is to ramp up production to three vehicles per hour by next year, with an annual output of 10,000 robotaxis expected by 2027.
Zoox’s robotaxi design intentionally diverges from Waymo’s approach. Instead of retrofitting autonomous technology into conventional cars, Zoox has created a carriage-like vehicle that seats up to four passengers without a steering wheel or driver’s seat. This distinct design aims to offer a different passenger experience, banking on futuristic aesthetics and function to attract riders.
Waymo, meanwhile, remains the established leader with over 10 million paid rides under its belt. The company began its robotaxi service in Phoenix nearly five years ago and expanded to cities like San Francisco, Los Angeles, and Austin. On Wednesday, Waymo filed an application to begin testing its robotaxis in New York City, signaling continued ambitions to grow in major urban centers. Waymo’s robotaxis are based on modified vehicles from major automakers, maintaining a more traditional car appearance compared to Zoox’s innovative design.
Tesla’s CEO Elon Musk is also in the autonomous vehicle race, though his timeline has slowed considerably since his initial prediction of operating a million robotaxis by now. Tesla is planning a limited rollout of its robotaxis in Austin, Texas, potentially as soon as this Sunday, but Musk has emphasized caution, delaying the launch over safety concerns.
Zoox plans to deploy between 500 and 1,000 robotaxis in smaller markets and up to 2,000 in larger cities like Las Vegas and San Francisco. It expects its robotaxis to operate for roughly five years or 500,000 miles before being retired. While half the vehicle components are sourced internationally, Zoox emphasizes domestic assembly at its California factory.
As Amazon positions Zoox to compete directly with Waymo and Tesla, the race for dominance in the self-driving taxi market is intensifying. The next few years will reveal whether Amazon’s investment and innovation can overcome Waymo’s early lead and Tesla’s high-profile ambitions in reshaping urban mobility.
