Key takeaways

• Tesla started robotaxi rides in Austin, Texas, in late June

• Waymo autonomous vehicles now in Atlanta via Uber partnership

• Amazon gearing up to launch Zoox robotaxis in Las Vegas later this year

The American robotaxi race has a new entrant, ready to tap a market that’s estimated to top $10 billion in revenue in 2030.¹ Tesla launched its robotaxi service in Austin, Texas, in late June, limiting its rides to specific users between 6 a.m. and midnight and within a select part of the city. Riding in around dozen autonomous versions of the company’s Model Y all-electric SUV, passengers are charged $4.20 per trip.²

The current robotaxi market leader — Alphabet-owned Waymo — has offered public autonomous rides since 2020, and now runs 250,000 paid robotaxi rides a week in the western U.S. — across Austin, Los Angeles, Phoenix, and San Francisco.^3,4 In June, Waymo expanded into  Atlanta, forming a partnership to let Uber riders match in the ride-hailing app with either Waymo’s autonomous vehicles or Uber’s own fleet of drivers.

The world’s second-largest employer on the Fortune 500, Amazon, is also gearing up to launch robotaxi service via its Zoox autonomous vehicle startup. It’s expected to start public robotaxi rides in Las Vegas later in 2025, with San Francisco next in line. Zoox was bought by Amazon for $1.3 billion in 2020, and its robotaxis appeared on public streets for testing in 2023.⁵

Zoox both produces and operates distinctive, four-passenger “carriage-style” vehicles, with no steering wheel in sight. The company currently manufactures one robotaxi a day, with growth plans to ramp up to 10,000 per year.⁶

How traditional carmakers align with robotaxis

Jaguar has partnered with Waymo on its robotaxi fleet, with 1,500 Jaguar I-Pace electric vehicles currently on the road — and 2,000 more expected by the end of 2026. Waymo's factory in Mesa, Arizona integrates out-of-the-box cars with the necessary cameras and features to enable autonomous driving.⁷

In June, German automaker Volkswagen debuted a microbus electric vehicle that will serve as robotaxis for Uber. Sometime next year, nearly 500 will be available in Los Angeles for rides within the Uber app.⁸

While the car company has entered the robotaxi space as a manufacturer, Volkswagen is looking at partnerships and licensing to drive additional business. The company can provide the vehicles and necessary backend software to manage the fleet, along with the offer of a digital customer booking service. The EVs themselves are a blank slate, ready for company-specific branding.⁹

Widening the scope of automation

Waymo threw its hat into the ring in June to enter the New York City market, aiming to sprinkle its cars among the ubiquitous yellow cabs. The tradeoff lies in the rollout: Waymo’s cars will be manually driven starting in July, while an application is pending to have them operate autonomously under supervision. A driverless ride will take more legwork, as New York state law currently does not allow cars to be run without a human behind the wheel.¹⁰

Another area of the U.S. has a different vision for the ride experience: Florida will soon be home to what’s called the first fully autonomous public transit system in America. Under a $36 million contract from the Jacksonville Transportation Authority, 14 ADA-compliant vans from the startup Beep can accommodate wheelchair users and will make 13 stops on a 3.5-mile route across the city’s downtown. A human safety monitor will occupy the driver’s seat.¹¹

Ride-hailing and robotaxis can offset some costs

The robotaxi industry has room to run: 54% of Americans currently wouldn’t ride in one, though Millennials and Gen Xers are more receptive.¹² Striking a balance with personal finances could help move the needle.

Read more: Buckle up: Nearly 60% of Americans keeping cars longer to save money

Getting around took a large bite from American budgets in 2023 — the most recent year for which national data is available: Households spent an average of $13,174 on transportation that year, as the second largest household expenditure category after housing.¹³

With 92% of U.S. households having at least one vehicle available for personal use, driving actions — and expenses — have been adding up:¹⁴

• Staying protected has become more expensive: The cost of car insurance has risen a whopping 57.5% since May 2019.

• Fueling up is still a budget line item: People spent an average of $177 a month on gas in early 2025, based on Empower Personal Dashboard^TM data.

• There’s less chance of splitting the costs: 88% of American car commuters choose to drive alone rather than carpool.¹⁵

• Some are reconsidering car buying: Recent U.S. tariffs around metals and imported cars have introduced some uncertainty for consumers determining if a brand-new car is the best way forward. In Q1 2025, car loan balances fell by $13 billion to $1.64 trillion, serving as only the second quarterly decline in auto debt since 2011.

Read more: Auto debt declines as buyers face crossroads on prices, tariffs

Riding on those trends has been an uptick in outsourcing driving. Americans have put more money toward rideshare, with people spending an average of $109.10 in May 2025 — an 18% jump over the past four years (compared with $89.10 in May 2021), according to Empower Personal Dashboard^TM data.

Getting on board

Rideshare dollars can also be money well spent for a mental break: Passengers could reclaim time for themselves, as nearly two in five Americans say saving time is more important than saving money (37%), based on Empower research findings. San Francisco, where Waymo made its public debut, has seen commutes get longer and currently holds the fifth-worse commute time in the U.S. at 30.9 minutes one-way.¹⁶

With ridesharing, attention that used to be needed to take the driver’s seat can translate into additional work or leisure time — answering work emails or Dreamscrolling deals.

Robotaxis take the concept of “opting out” even further, removing the need to even make small talk with a driver.