HAYWARD, Calif. (AP) — In an ambitious move to compete in the rapidly evolving world of autonomous transportation, Amazon has announced plans to manufacture up to 10,000 robotaxis annually at a massive facility located near Silicon Valley. This new venture positions Amazon to challenge the self-driving taxi leader, Waymo, and also enters the competitive arena against Tesla, where CEO Elon Musk is eager to establish his own autonomous fleet.

The newly unveiled 220,000-square-foot (over 20,440 square meters) robotaxi manufacturing plant, disclosed on Wednesday, marks a significant turning point in Amazon’s journey into the world of self-driving technology. This initiative traces back to 2009 when Waymo began as a covert project within Google, eventually blossoming into the industry leader it is today.

A significant step in Amazon's autonomous journey occurred five years ago when the company made headlines by investing $1.2 billion in Zoox, a self-driving startup. This acquisition will enable Zoox to develop the brand behind Amazon's robotaxi service, which is expected to begin passenger transportation in Las Vegas later this year, with plans for expansion into San Francisco in 2024.

Founded in 2014, Zoox is now racing to catch up with Waymo, which began its robotaxi operations in Phoenix nearly five years ago and recently started charging passengers for rides in San Francisco as of 2023. Waymo has already achieved over 10 million paid rides, while competitors like Amazon and Tesla are still in the process of refining their self-driving technologies and addressing the logistical challenges associated with scaling their fleets.

Amazon believes it has tackled the manufacturing aspect with Zoox's factory located in Hayward, California, just 17 miles (approximately 27 kilometers) from a Tesla facility that produces electric vehicles. This new plant, which was formerly a bus manufacturing site, has been transformed into a cutting-edge facility where Zoox’s unique, boxy robotaxis are designed and tested along a state-of-the-art, 21-station assembly line. Presently, Zoox is producing one robotaxi per day, but it aims to ramp this up to a production rate of three vehicles per hour by next year.

By the year 2027, Zoox plans to manufacture 10,000 robotaxis annually, with ambitions to extend its operations into other major markets such as Miami, Los Angeles, and Atlanta. Although the vehicles will be assembled in the United States, it is important to note that about half of the components required for production will be sourced from international suppliers, as indicated by company officials.

During a recent tour of the factory, Zoox CEO Aicha Evans expressed her enthusiasm about the project's future, stating, “It’s an exciting time to be heading on this journey.” She was joined by Jesse Levinson, the co-founder and chief technology officer, emphasizing the innovative spirit at play as the company endeavors to carve out its niche in the competitive landscape of autonomous vehicles.

While Zoox may be entering the market later than Waymo, it is betting on the appeal of its unique vehicle design, which resembles a carriage rather than traditional cars. Unlike Waymo, which retrofits existing automobiles with self-driving technology, Zoox has opted for a design devoid of a steering wheel, emphasizing a futuristic vision for urban transportation.

As testing continues in Las Vegas, Zoox has also formed a partnership to provide rides for guests at Resorts World. Simultaneously, the company is conducting trials in San Francisco, a city already familiar with the presence of driverless vehicles thanks to Waymo’s extensive operations. Recently, Zoox faced scrutiny after a minor collision involving one of its robotaxis and an electric scooter. Although the incident did not result in injuries, Zoox chose to issue a voluntary recall to refine its self-driving software.

Meanwhile, Tesla, under the leadership of Elon Musk, is also striving to establish its presence in the autonomous vehicle sector. Although Musk's timeline for realizing his dream of a vast robotaxi service has been adjusted, he remains optimistic about the future. His current plans include a limited rollout of Tesla robotaxis in Austin this coming Sunday, though he has indicated that safety remains a top priority, prompting him to approach the launch with caution.

In contrast to Tesla's broader aspirations, Zoox is aiming to deploy between 500 to 1,000 robotaxis in smaller markets and around 2,000 in major metropolitan areas, aligning with Evans’ vision for the company's future. Each robotaxi manufactured at the Hayward facility is expected to have a lifespan of approximately five years, capable of covering around 500,000 miles during its operational life.