Amazon Takes on Waymo and Tesla With Massive Robotaxi Launch in San Francisco. What That Means for AMZN Stock.

Amazon's (AMZN) push into self-driving cars just gained momentum. Its Zoox unit is now running fully autonomous vehicles on public roads in San Francisco, California, one of the country's toughest and most closely watched robotaxi markets.

For a company mostly known for e-commerce and cloud computing, this is a big step that unlocks another revenue stream. The move puts Amazon squarely in a race that Alphabet's (GOOGL) Waymo already leads, and one that Tesla (TSLA) is eyeing as well.

For investors watching AMZN stock, the expansion signals that a business bought for roughly $1.2 billion back in 2020 is being tested at scale.

Zoox Robotaxi Design Sets It Apart From Rivals

Zoox operates vehicles that do not look like normal cars. These vehicles have no steering wheel and no pedals. They are also bidirectional, meaning they have no front or back, and they seat four passengers facing each other. 

Zoox describes its vehicle as able to "go in any direction," using four-wheel steering and an active suspension system built from the ground up for autonomous operation. 

In a report published this week, The Wall Street Journal described the vehicle's look as “toaster-shaped.” Zoox skipped retrofitting existing cars and instead built a robotaxi with no compromises for a human driver. That approach has already produced results. Zoox has driven more than 3 million autonomous miles and has carried close to 1 million passengers, per WSJ.

The company began charging for rides in Las Vegas, Nevada on Aug. 10, after securing a government exemption to run vehicles commercially without conventional driver controls. San Francisco marks a bigger test, since Waymo already runs a large fleet there.

How Zoox Stacks up Against Waymo and Tesla

According to a Business Standard report, Tesla is preparing to bring its purpose-built Cybercab into its existing Robotaxi service, which currently runs on Model Y vehicles in Austin, Dallas, and Houston, Texas as well as parts of Florida. Tesla may begin Cybercab rides for employees on public roads before folding the vehicle into its commercial service.

Zoox builds its robotaxis at a 220,000-square-foot plant in Hayward, California, with capacity for more than 10,000 vehicles a year. The company currently has about 100 vehicles on the road. By contrast, Tesla produced its first Cybercab at Gigafactory Texas in February 2026 and is using an "Unboxed" process that assembles several vehicle modules in parallel.

Regulation is another differentiator. Zoox has already cleared a lengthy approval process and can operate up to 5,000 vehicles under specific road and weather conditions. Many of Tesla's current Robotaxi vehicles still require a human safety supervisor under state law.

Why the Ride-Hailing Market Matters for Amazon Stock

The bigger prize here is the ride-hailing market itself. Global revenue is expected to grow from $224.84 billion in 2025 to $266.28 billion in 2026, then increase to $513.77 billion by 2031, a 14.05% compound annual growth rate (CAGR) according to Mordor Intelligence.

The market research report states that, while traditional e-hailing still made up almost 74% of 2025 revenue, robotaxi services are expanding at a 16.6% annual rate, faster than any other segment. Asia Pacific currently leads the overall market with a 38.44% share as of 2025, but North America remains the technology proving ground, with Waymo and now Zoox setting the pace.

For Amazon, Zoox is still tiny next to Amazon Web Services (AWS) or its retail business. But if robotaxis become a normal way to get around cities, the upside could be significant. Amazon CEO Andy Jassy has said that AWS could become a $1 trillion revenue business over time. Zoox adds another long-term bet layered on top of cloud computing expansion. 

San Francisco will be the proving ground. Waymo has a head start there, and Tesla's Cybercab rollout is still ahead. But Zoox now has paying customers on the ground in one of the country's most demanding markets. That alone makes this expansion worth watching closely.

What's Next for AMZN Stock?

Analysts tracking Amazon stock forecast revenue to increase from $717 billion in 2025 to $1.38 trillion in 2030. In this period, adjusted earnings are projected to expand from $7.17 per share to $19 per share. If AMZN stock trades at 25 times forward earnings, below its current forward earnings multiple of 32 times, it could climb more than 70% within the next four years.

Out of the 57 analysts covering Amazon stock, 49 recommend a “Strong Buy” rating, six recommend a “Moderate Buy,” and two recommend a “Hold” rating. The average price target of $326.49 represents potential upside of 23% from current levels.