Federal regulators give Zoox an exemption for its custom-built robotaxis

The National Highway Traffic Safety Administration has given Zoox an exemption to demonstrate its custom-built robotaxis on public roads and closed a related investigation into whether the Amazon-owned company had sidestepped federal regulations.

The decision, which was announced Wednesday, clears up a long-standing debate over whether Zoox’s custom-built autonomous vehicles complied with federal motor vehicle safety standards, which place requirements on vehicles such as having a steering wheel and pedals. Zoox had argued that it did and announced in July 2022 that it had self-certified; NHTSA balked. The agency opened an investigation in March 2023 to look into the matter, and specifically the process and data that Zoox had used to self-certify.

The investigation didn’t slow Zoox’s development and testing of its autonomous vehicle technology. In early 2023, Zoox began testing its custom-built robotaxis, which don’t have a steering wheel or other traditional controls, on public roads near its Foster City, California headquarters. The company has since expanded its testing footprint to Las Vegas and San Francisco.

Zoox does not operate a commercial service yet. However, in San Francisco it has opened its robotaxis up to employees and hosted family and friends. Earlier this year, the company launched an Zoox Explorer program, aimed at early public riders, in Las Vegas.

For now, the exemption allows Zoox to demonstrate the robotaxis, not operate them commercially.

NHTSA’s announcement is connected to its new national framework, which the agency argues will make it easier for companies to deploy autonomous vehicles without traditional manual driving controls — like steering wheels, pedals, and sideview mirrors — at scale.

The framework, known as AV STEP (or ADS-Equipped Vehicle Safety, Transparency and Evaluation Program), allows NHTSA to green-light the sale and commercialization of autonomous vehicles that are not compliant with federal safety standards due to a lack of manual controls. 

The revised process involves an expedited application that allows companies like Zoox to receive exemptions for testing and demonstrations, and eventually, commercial operations. Zoox spokesperson Whitney Jencks said in an email that Zoox is working in close cooperation with NHTSA on this process, beginning with the demonstration exemption and followed by the commercial exemption.

As part of the agreement, NHTSA has closed its investigation into Zoox’s self-certification of its AVs. Zoox has agreed to remove or cover all statements that its purpose-built vehicles comply with applicable Federal Motor Vehicle Safety Standards.