The Robotaxi Race is Spreading, Can Amazon and Alphabet Turn More Cities into Revenue?

The US robotaxi race is moving beyond a handful of early markets. Amazon.com, Inc.’s (NASDAQ:AMZN) Zoox and Alphabet Inc.’s (NASDAQ:GOOGL) Waymo have announced expansions into additional cities as both companies work toward larger autonomous ride-hailing networks.

The announcements represent different stages of that expansion. Zoox will begin mapping and testing in Houston and San Diego, while Waymo plans to welcome its first public riders in Denver, San Diego, and Tampa. The growing footprints demonstrate operational progress, but neither company disclosed how much revenue the new markets could generate.

Bull Case

Zoox’s addition of Houston and San Diego will bring its US presence to 12 locations. The company will initially deploy retrofitted test vehicles operated for manual mapping and testing before introducing its purpose-built driverless robotaxis. This phased approach gives Zoox an opportunity to collect local road information and test its technology before carrying passengers in the new markets. Although Houston and San Diego are not yet commercial launches, establishing operations there creates a foundation for possible future robotaxi deployment.

Zoox has already moved beyond free testing in one market. After carrying passengers without charge in Las Vegas, San Francisco, Austin, and Miami as part of its testing program, it began offering paid rides in Las Vegas in August. That launch marked its transition from testing-only operations to generating revenue from passenger services.

Waymo is further along in its commercial development. It already operates paid driverless services in several US cities and says the addition of Denver, San Diego, and Tampa will bring its fully autonomous ride service to 14 cities. The company also plans to expand public access gradually in the three new markets. The simultaneous moves into San Diego show that both companies have included the city in their expansion plans, although Zoox remains at the testing stage while Waymo is beginning public rides. Competition could encourage faster product development and wider consumer awareness of driverless transportation.

Waymo is also pursuing growth outside the United States. It plans to begin testing autonomous vehicles in Munich before a proposed commercial launch in Germany toward the end of 2027. If completed, that expansion would give Alphabet’s robotaxi subsidiary experience operating in another major regulatory and transportation market. For Amazon and Alphabet, broader city coverage creates more opportunities to test their technology under different road, traffic, and operating conditions. It also expands the potential customer base for their respective services.

Bear Case

The announcements should not be interpreted as equivalent commercial launches, as Zoox is beginning manual mapping and testing in Houston and San Diego, not immediately offering driverless rides to the public. Waymo will start carrying public riders in its three new cities, but access will expand gradually. A lot would depend on how many customers are initially admitted, how large the operating areas will be, or when broad availability is expected.

Neither company disclosed revenue targets, operating costs, or profitability expectations for the newly announced markets. Expanding into more cities demonstrates geographic reach, but does not by itself establish that robotaxi operations are economically sustainable.

Competition is also intensifying in the sector. Zoox’s paid Las Vegas launch places it more directly against Waymo and Tesla as the companies race to scale autonomous ride-hailing in the United States. Greater competition could require continued spending on vehicles, testing, and market expansion. Waymo’s international plans remain preliminary as well. Testing in Munich is expected to begin before a targeted late-2027 launch, but the commercial date remains a plan rather than a confirmed outcome.

Conclusion

Waymo currently has the broader operating position, with paid services in multiple cities and public riders planned across three more. Zoox is earlier in its rollout but has reached the important milestone of paid rides in Las Vegas and is preparing two additional markets.

Both expansions show progress, but city counts alone do not establish commercial success. The long-term value for Amazon and Alphabet will depend on how quickly these operations achieve broad availability, attract paying riders, and demonstrate sustainable economics.

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This article is originally published at Insider Monkey.