Amazon and Alphabet surge ahead in robotaxi race while Tesla lags behind
The race to dominate the robotaxi market is heating up as major tech firms push ahead with driverless ride services. Amazon and Alphabet are expanding their operations, while Tesla faces challenges with its autonomous vehicle claims. Industry analysts predict a surge in demand for robotaxis over the next decade.
Amazon's Zoox division has started offering free robotaxi rides in Las Vegas and San Francisco since late 2025. The company plans to manufacture up to 10,000 of its purpose-built electric robotaxis annually at a former bus plant in Hayward, California. These vehicles are already operating in Las Vegas, though no further expansion cities have been confirmed.
Alphabet's Waymo, meanwhile, has launched a paid robotaxi service in Miami, marking its sixth U.S. market. The company also announced plans for fully driverless rides in London by 2026, alongside further U.S. city expansions. Waymo's parent company, Alphabet, reported strong financial growth, with revenue rising 16% year-over-year to over $102 billion and net income jumping 33% to $34.98 billion in the last quarter.
Tesla, however, has struggled with its robotaxi ambitions. Despite offering driverless services in Austin, the vehicles still require support crews, raising doubts about Tesla's full autonomy claims. The uncertainty has weighed on the company's stock performance.
The robotaxi sector is expanding rapidly, with Amazon and Alphabet leading the charge. Zoox is scaling production, while Waymo continues its U.S. and international rollout. Tesla's setbacks highlight the technical hurdles still facing fully autonomous ride services.
