Amazon Zoox Expands Robotaxi Fleet in San Francisco

Amazon is accelerating its autonomous mobility push as its Zoox subsidiary expands robotaxi operations across San Francisco. The expansion brings Amazon into closer competition with market leader Waymo, which maintains an operating footprint spanning more than 330 square miles in the Bay Area. Zoox holds a federal exemption allowing commercial deployment of up to 2,500 purpose-built robotaxis annually over two years, though its San Francisco service currently operates under California's driverless pilot program rather than a full commercial permit.

Zoox initially invited waitlisted riders in San Francisco in November 2025 across the SoMa, Mission, and Design District neighborhoods. In spring 2026, it quadrupled that initial service area, following the launch of its first paid commercial operations in Las Vegas in August 2026. The company designs custom driverless vehicles from scratch, with its Hayward manufacturing facility planned to produce approximately 10,000 robotaxis annually once operating at target capacity.

The push comes as global ride-hailing revenue is projected to rise from $224.84 billion in 2025 to $266.28 billion in 2026, and reach $513.77 billion by 2031, according to Mordor Intelligence. That represents a 14.05% compound annual growth rate, with e-hailing capturing 73.62% of total industry revenue in 2025. Competitor Tesla is also targeting the segment, deploying modified Model Y units across Texas and Florida and operating paid Cybercab trips in Austin.

Institutional support for Amazon strengthened as this expansion unfolded. Hedge fund holdings in Amazon rose from 353 funds in the first quarter to 369 in the second quarter. By contrast, hedge funds holding Tesla shares declined from 123 to 116 over the same stretch.