Days after the US government's road safety agency approved the commercial deployment of its robotaxis that operate without human controls, Amazon announced on Wednesday that Zoox will start offering paid rides in Las Vegas next week.
As part of testing, Zoox has been transporting passengers for free in Las Vegas, San Francisco, Austin, and Miami in an electric carriage-style vehicle with two rows of inward-facing seats.
As businesses compete to develop autonomous ride-hailing, its commercial launch heightens competition in the US robotaxi sector, where Waymo from Alphabet already runs paid driverless services in many locations, and Tesla has started launching its service, according to a report by Reuters.
ALSO READ: Amazon Bucks Wall Street Rally, Shares Fall 2% On Jeff Bezos' $4 Billion Stake Sale Plan
According to a statement, Zoox will begin charging users in Las Vegas on Monday, with prices comparable to those of other ride-hailing services' "comfort" tier. The "comfort" category usually charges between 20% and 40% more for newer, more spacious cars than regular ride-hailing services.
When it would begin offering paid trips in other cities was not disclosed.
The National Highway Traffic Safety Administration (NHTSA) exempted Zoox, the first autonomous ride-hailing company, from federal regulations requiring human controls. This was a significant milestone for businesses creating robotaxis from the ground up instead of altering traditional cars.
However, the clearance is restricted to 2,500 vehicles each year for the following two years.
According to the NHTSA, Zoox's car was as safe as a comparable vehicle that complied with federal motor vehicle safety regulations, but it imposed additional reporting requirements for problems such as collisions or improper road stops.
Riders won't pay more if the robotaxi takes a longer route than anticipated, according to Zoox, and charges will be based on a basic fare plus time and distance model determined using the optimum route. Any destination-specific expenses, such as airport journeys, will be revealed up front.
ALSO READ: Wall Street Highlights: S&P 500, Nasdaq Close Near Record As Amazon Tops $3 Trillion Market Cap
Robotaxi operators are still subject to regulatory scrutiny over safety, especially how they handle emergency situations and interact with other drivers.
Over the past two years, Zoox has issued a number of software recalls. The most recent one occurred in July after one of their robotaxis failed to identify severe smoke at an emergency incident.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.