Autonomous ride-hailing grows in key US markets

Zoox reached a regulatory milestone by receiving a National Highway Traffic Safety Administration (NHTSA) exemption to test its custom robotaxis on public roads, concluding an investigation into potential federal rule bypasses and moving closer to broader approval from US regulators to operate autonomous vehicles without conventional driving controls. 

In October, Zoox extended its testing to the East Coast by launching its fleet in Washington, D.C. The Zoox fleet is now active in eight cities, including Atlanta, Austin, Las Vegas, Miami, the San Francisco Bay Area and Seattle. Zoox also rolled out a free autonomous ride-hailing service along the Las Vegas Strip using its purpose-built robotaxi and began free robotaxi rides for early users in parts of San Francisco through its Zoox Explorer program.  

This year, Zoox opened its first mass-production facility in Hayward, California, capable of assembling more than 10,000 vehicles annually to support its nationwide robotaxi expansion plans. However, NHTSA exemptions currently allow only 2,500 vehicles per year that do not meet standard federal safety requirements—such as having a steering wheel or pedals—and these exemptions have previously been limited to just a few years. 

While NHTSA is working toward streamlining regulations to accommodate autonomous ride-hailing, Zoox still faces hurdles. 

Tesla introduced a robotaxi service in Austin featuring a safety monitor in the front passenger seat and later launched a charter service in the San Francisco Bay Area that employs human drivers using its Full Self-Driving software. Tesla does not yet have permission in California to test autonomous vehicles or operate a paid autonomous ride-hailing service. In November, Tesla was granted a permit to operate a paid ride hailing service in Arizona with a safety driver, starting in Phoenix.

Waymo remains the only operator offering paid, fully driverless service. Its progress, however, has been tempered by safety and regulatory challenges, including NHTSA probes and recalls following minor collisions and a reported failure to stop for a school bus. Waymo responded by enhancing its school-bus detection capabilities and planning additional software updates. 

Community acceptance presents another obstacle: Santa Monica ordered Waymo to halt overnight charging at two locations due to noise complaints from the vehicle’s reversing signal alarms, underscoring that large-scale deployment requires attention to neighborhood impact. 

Other US operators face similar issues. In May 2025, Zoox recalled 270 vehicles after a software-related crash in Las Vegas and initiated another recall following a collision with an e-scooter rider in San Francisco, stating that it had proactively updated its systems in both cases. 

Tesla remains in earlier stages of deployment, operating a small pilot fleet in Austin that still relies on a safety monitor but can charge for rides. In , California, Tesla  has not secured permits for testing or charging for rides though the company is providing ‘charter’ services with a driver,  while deployment is beginning in Arizona.

S&P Global Mobility’s December 2025 Autonomy Forecasts describes sales of autonomous vehicles growing slowly in the US. In 2035, US sales of autonomous light vehicles are forecast to reach around 85,000 units, and we project a market share of about 0.5% per year a decade from now. 

Overall, the success of US ride-hailing firms depends heavily on public trust, which can be undermined by safety incidents and regulatory scrutiny. Scaling operations will also require addressing charging, maintenance, noise mitigation and city-specific rules while managing costs. In addition, profitability remains uncertain until operators reach sufficient scale to amortize expenses.