In a significant milestone for the autonomous vehicle industry, Zoox, a subsidiary of Amazon, is gearing up to launch its highly anticipated robotaxi service in Las Vegas. The company's purpose-built vehicle, designed without a steering wheel or pedals and featuring four inward-facing seats, has demonstrated its ability to smoothly navigate a 5-mile stretch of public roads just off the Vegas strip. This achievement positions Zoox as a frontrunner in the race to bring fully autonomous ride-hailing services to the masses.
The recent test ride, experienced by a journalist from Bloomberg, showcased the Zoox robotaxi's capabilities in handling mixed, multi-lane traffic at speeds of up to 45 miles per hour. The journey, reminiscent of a typical ride-hail experience, involved using a smartphone app to set the destination and confirm the ride. Once inside the vehicle, passengers can enjoy amenities such as air conditioning and music playback, although the interior remains relatively minimalistic.
Zoox's approach to the development of autonomous vehicles sets it apart from competitors like Alphabet's Waymo and General Motors' Cruise. While the latter two have focused on retrofitting consumer cars and forming partnerships, Zoox has remained steadfast in its goal of operating its own ride-hailing service using purpose-built robotaxis. This strategy allows the company to maintain complete control over the vehicle's design, manufacturing, and operation, ensuring a seamless and tailored experience for its passengers.
During the test ride, the Zoox vehicle demonstrated its ability to handle various traffic scenarios, including unprotected right turns, yielding the right-of-way to oncoming traffic and pedestrians, and discerning when it was safe to turn right at a red light. The vehicle also navigated through construction zones and lane closures, adapting to the changing road conditions. While the test route did not include any left turns, Zoox's co-founder and chief technology officer, Jesse Levinson, assured that the vehicle is capable of handling them.
The smooth and human-like driving experience of the Zoox robotaxi sets it apart from other autonomous ride-hail services. The vehicle's decision-making process appears to be quicker and more intuitive compared to its competitors. However, passengers must adjust to the lack of front and rear window visibility, as well as the absence of screens displaying a digital visualization of the vehicle's surroundings.
Zoox's elaborate sensor suite, comprising lidar, radar, and cameras on each corner of the vehicle, plays a crucial role in its autonomous capabilities. The company has also developed a cost-effective method for building its robotaxis, with most components arriving preassembled from suppliers. While the per-unit cost of each robotaxi is high, the potential for suppliers to build thousands of units per year, combined with the prospect of the vehicles operating for significant portions of the day and charging fares similar to current ride-sharing apps, could quickly cover the costs and prove the business model successful.
Levinson believes that a purpose-built robotaxi, operated by its maker, is the safest way to deploy autonomous vehicle technology in the real world. He estimates that it would take any company a minimum of five years to achieve this feat, highlighting the complexity and time-consuming nature of designing, building, and ensuring the safety of such vehicles.
As Zoox prepares to expand its testing to other cities, including San Francisco, Austin, and Miami, the company remains committed to a deliberate and steady approach to growth. CEO Aicha Evans emphasizes Zoox's conviction in the path it has chosen, steering clear of the race to commercialize the technology and instead focusing on delivering a reliable and safe autonomous ride-hailing experience.
NASDAQ: AMZN
Current Price: $184.30
Change: -0.38%
The stock prices of companies involved in the development of autonomous vehicles, such as Amazon, Tesla, General Motors, Alphabet, and Lyft, are currently trading in a sideways trend. This suggests that investors are closely monitoring the progress and potential impact of autonomous vehicle technology on these companies' future prospects. AMZN has support at $180 and resistance at $190. TSLA has support at $175 and resistance at $180. GM has support at $44 and resistance at $47. GOOGL has support at $170 and resistance at $180. LYFT has support at $15 and resistance at $16. The 50-day moving averages are hovering close to the 200-day moving averages for all five stocks, indicating a neutral trend. The MACD indicators are near the zero line, suggesting a lack of strong momentum in either direction. The stocks are trading within their respective Fibonacci retracement levels, with AMZN near the 38.2% level, TSLA near the 50% level, GM near the 61.8% level, GOOGL near the 50% level, and LYFT near the 38.2% level. These levels may act as potential support or resistance points. The stock prices are trading within the Bollinger Bands, indicating that the current price action is within the expected volatility range. A breakout above or below the bands could signal a potential trend change. The technical analysis suggests that the stocks of companies involved in autonomous vehicle development are currently in a sideways trend, reflecting the market's cautious sentiment as it awaits further developments in the industry. Investors should keep a close eye on key support and resistance levels and watch for any breakouts or changes in momentum that could indicate a shift in market sentiment.
