Zoox is taking on Waymo in San Francisco with free rides and a very different robotaxi

Zoox, the Amazon-owned robotaxi company, is attempting to enter the San Francisco market as Waymo holds a dominant position there. To differentiate itself, Zoox is offering free rides and partnering with local establishments, while presenting its unique vehicle design. Zoox operates a smaller fleet of around 100 autonomous vehicles, compared to Waymo's nearly 4,000.

The company's vehicles have a distinctive turquoise cabin without steering wheels, pedals, or a driver's seat, setting them apart from Waymo's modified cars. Zoox opened a Rider Lounge in downtown San Francisco in May, providing a space for demonstration rides and showcasing the vehicles. The company initiated free rides in November, expanding the program in June to include eight restaurants and landmarks like the Ferry Building, Painted Ladies, and Castro.

However, Zoox still requires permits from the California DMV and Public Utilities Commission to collect fares. They have already begun charging fares in Las Vegas, with prices slightly higher than Uber and Lyft. In July, federal regulators granted Zoox a temporary exemption from specific vehicle-safety rules, allowing them to deploy up to 5,000 vehicles for fare collection over the next two years.

Zoox is also using community-focused initiatives to introduce people to their service, collaborating with local businesses, events, and tourist sites. Despite Waymo's significant lead in autonomous driving, with over 500,000 rides weekly compared to Zoox's 10,000, the industry remains an emerging business, with many consumers unfamiliar with the concept of driverless cars.