Ì첩ÈüʹÙÍø

• Amazon, via its subsidiary Zoox, opened a production facility 220,000 square feet in size for autonomous vehicles in Hayward, California. 
• Manufactured in this facility could be a capacity of up to 10,000 purpose-built robotaxis annually, further cementing Amazon’s place in the global autonomous mobility scenario.

Amazon has boldly projected itself onto the autonomous mobility racetrack. The company has formally opened a manufacturing facility in Hayward, California, dedicated to building 10,000 vehicles autonomously per year. Operated by , an autonomous vehicle-promoting subsidiary of Amazon itself, the plant represents a strategic shift in how this tech giant is reaching into transport infrastructure beyond retail and logistics.

The 20,438 square-metre factory (220,000 square feet) was purposely designed to develop scalable production of Zoox’s electric, fully autonomous robotaxis. These vehicles are unlike conventional automobiles. Simply put, with its autonomy-oriented design, Zoox does not provide steering, a driver’s seat, or any other traditional mechanism for human operation while employing a bidirectional driving system. Compact in nature, these are purely urban transport vehicles designed to seat four passengers facing each other and capable of functioning without human intervention.

Since Tesla and Waymo are also strong competitors in the autonomous vehicle area, the move thus puts Amazon head-on against these two. Each player has its share of strengths: mass production capability for Tesla, AI and mapping for Waymo under Google, and logistics and cloud infrastructure for Amazon.

A Strategic Choice of Location

Hayward, California, was not chosen by accident. It is located near Silicon Valley and the San Francisco Bay Area, an epicentre of autonomous vehicle development and testing. Being in the proximity of an ecosystem clad with cutting-edge technologies, rich talent, and critical suppliers lends strategic advantages of speedy development and deployment. 

California’s state policies have been fairly accommodating in regard to autonomous vehicle testing, at least conducive enough to nurture innovation in transport technologies. Being backed legally and technically, companies like Zoox can afford to experiment and iterate much faster than in many other jurisdictions.

The Current State of Autonomous Vehicles

Autonomous vehicles are no longer speculative. According to several industry analysts, including McKinsey and its citations, the worldwide AV market may exceed several hundred billion dollars by 2035, with the major applications being commercial and urban mobility. Up until 2024, registration had been set for more than 1,400 autonomous vehicles testing on public roads across the United States, with California, Arizona, and Texas holding the highest concentrations.

Baidu and Pony AI have been licensed to carry out full driverless taxi services in key cities such as Beijing and Guangzhou. In the United Kingdom, the government has pledged to have self-driving cars on the road by 2026, supported by the Automated Vehicles Bill introduced in 2023.

Amazon’s move aligns with these global developments. The Zoox factory is intended not just for the U.S. market but for eventual international expansion, subject to regulatory approvals and infrastructure readiness.

The Vision Behind Zoox

The company was founded in 2014 and acquired by Amazon in 2020 for a profit in the order of $1.2 billion. The clear mission of the company is to produce autonomous ride-hailing vehicles meant purposely rather than being retrofitted after the fact. This design-first approach enables more compact, safer, and efficient vehicles optimised for urban settings.

The Zoox vehicle is powered by a 133 kWh battery, which supports up to 16 hours of continuous operation on a single charge. It is capable of speeds up to 75 miles per hour (121 km/h), making it suitable for a wide range of intra-city and highway uses. The vehicle has already begun testing in Las Vegas and San Francisco under real-world conditions.

Implications for Global Mobility

For cities affected by congestion, pollution, and ageing infrastructure, autonomous vehicles may offer new solutions. Driverless fleets are more predictable and therefore require fewer parking spaces. They can also be integrated with digital mobility platforms with ease. Autonomous shuttles and robotaxis could eventually find their way into the public-private mobility ecosystems that UK and European cities are currently building in their quest to reduce car dependence.  

From this perspective, one can see that Amazon’s investment could also be an intergenerational attempt to claw through e-commerce logistics down to urban mobility, thus adding yet another layer to the competitive landscape where retail and transport increasingly overlap.

Challenges and Considerations

Despite the progress, challenges remain. Regulatory uncertainty stands as the chief factor. While some governments are proactive in supporting autonomous vehicles, others have remained inactive or imposed restrictive regulations on their development and deployment. Public acceptance of the technology remains divided. According to a 2023 AAA survey, about 68% of Americans are still afraid to ride in autonomous cars.

The real Level 5 autonomy, meaning no human intervention is ever required, from a technical perspective, is still some years away. Most commercial AVs today and in practice operate at a Level 4, which implies they can drive themselves under certain conditions.

The Business Model Shift

What distinguishes Amazon’s approach is the lack of intent to sell these vehicles to consumers. Instead, Zoox plans to operate its fleet. This vertically integrated model—akin to Apple’s control over both hardware and software—could offer a stronger user experience, data capture, and maintenance control.

This also shifts the revenue model. Instead of relying on vehicle sales, revenue will come from ride-hailing services, subscriptions, or partnerships with cities and corporations.

Future Horizons for Autonomous Mobility

Amazon’s move into autonomous vehicle manufacturing underscores a broader transformation in global transport ecosystems. Mobility is no longer isolated to traditional automotive manufacturers. It now includes digital platforms, infrastructure planning, and data-centric operations.

Projections by PwC suggest that by 2030, autonomous vehicles could account for over 40% of urban mileage in major cities. This represents not just a technological shift but a new model of urban life, where convenience, automation, and accessibility intersect.

As Amazon, Tesla, Waymo, and others refine their platforms and expand testing zones, we can expect accelerated deployment in cities that offer regulatory clarity and digital infrastructure. What was once a concept in whitepapers is becoming tangible with physical production lines and real-world road testing.

For those shaping cities, investing in mobility tech, or preparing for new business models, now is the time to engage. Hayward is just the starting point. Autonomous mobility is rolling into the global spotlight—and its impact will be visible from London to Los Angeles.