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California regulators still have to approve Zoox's application to charge for rides in San Francisco — a clearance that Waymo received in August 2023 after overcoming safety concerns.

The exemption Zoox is seeking would allow the company to operate as many as 2,500 self-driving cars on U.S. roads.

All rides will be provided for free for at least the first few months to help promote the existence of the service in the perennially popular travel destination.

U.S. auto safety regulators granted an exemption to federal vehicle safety standards for purpose-built driverless cars made by Zoox, the Transportation Department said in a statement.

Waymo has applied for a permit to test its robotaxis in New York City, despite an absence of local regulations supporting commercially operated autonomous vehicles.

Amazon is gearing up to make as many as 10,000 robotaxis annually at a sprawling plant near Silicon Valley as it prepares to challenge self-driving cab leader Waymo. 

Zoox’s self-driving vehicles began rolling out in San Francisco’s SoMa neighborhood this week, and are expected to compete with robotaxis designed by Waymo.