Amazon's autonomous vehicle unit Zoox has launched a public robotaxi service in Las Vegas, offering free rides from five designated stops along the Strip, with plans to expand its coverage and operational flexibility.

Rides are hailed exclusively through the Zoox app available on iPhone and Android devices, and the company is awaiting regulatory approval to start charging fares.

Zoox's vehicles are custom-built for autonomous operation, featuring a distinctive design without traditional controls, and are equipped with advanced sensors including lidar, radar, and cameras for navigation and safety.

Studies indicate autonomous vehicles generally have a lower accident rate than human-driven cars, with safety systems reducing crash risks by 20% to 50% in various conditions.

Despite the promise, the autonomous vehicle market faces significant challenges such as strict regulations, public protests, federal investigations, and high costs, which have caused many ventures to shut down.

Zoox has collected data during testing to train its fleet for safe, driverless operation, complying with Nevada's regulatory frameworks that include safety and accident reporting requirements.

The company operates under a federal waiver permitting vehicles without traditional controls, supporting its development of autonomous technology.

The growth of the robotaxi market has impacted ride-hailing stocks like Uber and Lyft, with Uber partnering more with Waymo and Lyft expanding its autonomous offerings.

Zoox has invested in a manufacturing facility in Hayward, California, capable of producing around 10,000 robotaxis annually to support future expansion.

The autonomous ride-hailing industry is consolidating, with major companies investing heavily as projections estimate the market will reach $39 billion by 2030.

Zoox's vehicles operate at speeds up to 45 mph, with interior seating facing each other and equipped with sensors like lidar, radar, and cameras for navigation.

The market is becoming increasingly competitive, with companies like Waymo expanding into more cities and new entrants entering despite incidents and recalls involving autonomous vehicle operators.

Zoox plans to start charging for rides once regulatory approval is obtained, with a focus on safety and user experience, and has received a recent exemption from NHTSA to demonstrate its vehicles on public roads.