Published - February 14, 2023 @ 10:34 AM (EET)
On Monday, Amazon (NASDAQ:AMZN) saw its shares climb after the company reported the successful test of its autonomous vehicle unit Zoox, now driving on public roads in California with passengers on board.
The vehicle, which has no steering wheel or pedals, ran a mile-long route carrying staff between two Zoox buildings at its headquarters in Foster City, California, during the February 11 test.
Zoox executives said the company began the test after receiving approval from the California Department of Motor Vehicles and was part of the launch of a no-cost employee shuttle service that will help Zoox refine its technology.
The robotaxi trip, currently limited to Zoox employees, marks the first time that a vehicle designed without human controls has carried passengers on a public road, the company said.
WHY IT MATTERS
It is always exciting for investors to see their companies develop new revenue streams. If Amazon and Zoox can keep the momentum with their self-driving craft, there's a good chance of scoring a first-mover advantage in the robotaxi segment.
However, in addition to a commercial launch needing additional government clearances, the automated vehicle market has not rolled out as fast as initially expected.
As the technology has proven challenging to master, Ford Motor Co (NYSE:F) and Volkswagen AG last autumn announced they would shutter their Argo AI self-driving unit and focus more on driver-assistance technology that would provide more tangible results.
NOW WHAT
When Amazon acquired the 9-year-old startup in 2020, the tech behemoth shared little detail about how it planned to use the company's technology.
The robotaxi, which Zoox unveiled at the end of 2020, has been undergoing testing at its own facility and will travel at a top speed of 35 miles per hour.
Though Chief Executive Aicha Evans declined to provide a timeline for the commercial launch and remained conservative about the company's growth, tech chief Jesse Levinson said the company is on track to reach 2,500 employees this year, up from just under 2,000 at the beginning of 2023.
Shares of Amazon rose 1.71% in afternoon trading on Monday.
