Zoox clears final federal hurdle to launch paid robotaxi service

Federal safety regulators have given Zoox a temporary exemption that will allow the Amazon-owned autonomous vehicle technology company to charge customers for rides in its custom-built robotaxi.

The exemption from certain federal motor vehicle safety standards, which was announced Thursday by the National Highway Traffic Safety Administration, was one of the last remaining regulatory hurdles Zoox needed to clear before launching a commercial robotaxi service.

The decision was also published in the federal register.

Zoox custom-built vehicles lack many of the traditional controls required under federal law. For instance, the company’s autonomous vehicles do not have steering wheels or pedals. The agency is providing an exemption for eight federal motor vehicles standards, including windshield defrosting and light vehicle braking systems.

Nearly a year ago, NHTSA gave Zoox an exemption that allowed it to demonstrate its robotaxis on public roads, and even give rides to passengers in cities like San Francisco and Las Vegas. But the company couldn’t charge customers for those rides.

This new exemption comes with a few guardrails. It limits Zoox’s commercial fleet up to 2,500 vehicles annually for two years. The company will also be subject to what the agency described as an “enhanced, adaptable oversight structure that can evolve as Zoox’s technology advances.”

A Zoox spokesperson told TechCrunch that the company will soon begin charging for its service, first in Las Vegas. Additional markets will follow as the company completes state level requirements for commercialization, the company said. In California, where Zoox is headquartered, tests its AVs, and provides passengers with free rides, the company still needs driverless deployment permits from the state Public Utilities Commission and the Department of Motor Vehicles.

Zoox CEO Aicha Evans said the day marks an important milestone for the company and the future of autonomous mobility.

“We are honored to receive the first-ever commercial exemption for a purpose-built robotaxi from NHTSA, enabling us to begin charging for our service and take another step toward bringing autonomous ride-hailing to more communities,” Evans said in a statement.  

The Zoox news was part of a series of autonomous vehicle technology announcements made Thursday by the federal agency, including an update to the exemption process that allows automakers to temporarily sell a limited number of non-compliant vehicles, primarily to test new technologies.

The NHTSA said it is updating the exemption process to allow automakers to temporarily sell a limited number of non-compliant vehicles, primarily to test new technologies.

The agency also said it was partnering with SAE Industry Technologies Consortia, which will fund a three-year, $5 million consortium to gather data and accelerate creation of AV performance standards. The aim of the project, according to NHTSA, is to create a single national standard for AV safety.

NHTSA Administrator Jonathan Morrison said in a statement that the agency supports the safe development and deployment of automated vehicles.

“By removing unnecessary barriers to innovation, developing industry guidance, and providing strong enforcement oversight while we create performance requirements, NHTSA is taking a balanced approach to AV regulation,” he said. “These advancements will ensure that the United States continues to lead the world in AV technology in a safe and responsible manner.”

The NHTSA also said Thursday it was reviewing an exemption application from Los Angeles-based startup Robomart for its low-speed driverless vehicle. The startup developed an autonomous delivery vehicle that can hold up to 500 pounds of goods. NHTSA said it will publish a separate notice seeking public comment on its merits once the initial evaluation is complete.