Waymo Leads U.S. Robotaxi Race in 2024, as Tesla and Zoox Eye Expansion

Waymo has solidified its position as the frontrunner in the U.S. robotaxi market, but competitors like Elon Musk’s Tesla and Amazon-owned Zoox are ramping up efforts to close the gap.

Despite General Motors’ decision to shut down its Cruise robotaxi business earlier this year, the autonomous vehicle (AV) industry in the U.S. is closer than ever to achieving a driverless future.

For the AV industry, 2024 marked a pivotal year, with Alphabet-owned Waymo achieving mainstream recognition and making significant strides toward commercial success.

The road to this moment hasn’t been smooth. Over the past decade, several AV ventures faced major setbacks. Uber exited the AV space in 2020 following a fatal crash, and Ford abandoned its investment in Argo.AI two years later. Cruise also paused operations in 2023 after safety concerns, leading to its eventual shutdown in 2024 after GM’s $10 billion investment failed to yield sustainable results.

As Waymo takes the lead, Tesla and Zoox are vying to capture a share of the lucrative ride-hailing market. According to Fortune Business Insights, the global ride-sharing market is projected to skyrocket from $123.08 billion in 2024 to $480.09 billion by 2032.

As 2025 nears, here’s a breakdown of how these key players are shaping the robotaxi landscape.

Waymo Takes the Wheel

What began as Google’s “Project Chauffeur” in 2009 has evolved into a commercial robotaxi service operating across multiple U.S. cities. Rebranded as Waymo in 2016, the company achieved a milestone this year, completing over 4 million paid autonomous trips—more than triple its total in 2023.

Currently operating in Phoenix, San Francisco, and Los Angeles, Waymo covers over 500 square miles of public roads. In June, the company removed its waitlist in San Francisco, opening its service to all city residents via the Waymo One app. This move showcased Waymo’s ability to navigate dense urban traffic efficiently.

Alphabet reinforced its commitment to Waymo with a $5.6 billion multiyear investment, including $5 billion from Google’s parent company. Co-CEOs Tekedra Mawakana and Dmitri Dolgov emphasized aggressive scaling with a strong focus on safety.

Expansion plans for 2025 include launching services in Austin and Atlanta, with rides available via the Uber app. Waymo is also testing in Miami, with a public launch planned for 2026. Internationally, the company will begin testing in Tokyo in early 2025 through partnerships with Nihon Kotsu and the taxi app GO.

Waymo unveiled its next-generation robotaxi, developed with Chinese automaker Geely, featuring reduced hardware costs and fewer cameras and lidar sensors. Additionally, it partnered with Hyundai to integrate the Ioniq 5 SUV into its fleet, with testing slated for late 2025.

Despite its achievements, Waymo faced public scrutiny in 2024, including incidents of vandalism and criticism of its vehicles’ responses to unusual scenarios. To maintain public trust, the company published detailed safety reports and strengthened relationships with regulators and first responders.

Tesla’s Robotaxi Ambitions

While Tesla has promised robotaxi-ready vehicles for nearly a decade, 2024 saw progress mainly in the form of concept reveals. In October, CEO Elon Musk unveiled the “Cybercab,” a futuristic two-seater with butterfly doors and no steering wheel or pedals. Tesla plans to produce the Cybercab by 2027, aiming for a sub-$30,000 price point.

Tesla also showcased the “Robovan,” a sleek autonomous bus with art deco-inspired design. During a private event, Model Y vehicles demonstrated driverless capabilities in a controlled environment, though Tesla has yet to secure permits for commercial robotaxi operations.

Musk announced plans to enable Tesla’s existing vehicles to function as robotaxis by 2025 through software updates. However, regulatory hurdles and Musk’s history of missed deadlines leave critics skeptical.

Currently, Tesla’s Full Self-Driving (FSD) and Autopilot systems remain partially automated, requiring human supervision. Despite regulatory concerns, Musk has proposed federal approval for AVs under the incoming Trump administration.

Zoox Gains Momentum

Amazon’s Zoox has emerged as a serious contender in the AV space. Acquired in 2020 for $1.3 billion, Zoox operates a unique shuttle design with inward-facing seats, no steering wheel, and a futuristic “toaster-like” aesthetic.

In 2024, Zoox expanded its operational conditions to include nighttime driving, light rain, and speeds up to 45 mph. The company secured permits to carry public passengers in California and plans to expand services in Las Vegas and San Francisco through its Zoox Explorers program.

CEO Aicha Evans aims to transition Zoox from free test rides to a commercial service by 2025. The company is also testing vehicles in Austin and Miami and has attracted top talent, including Tesla’s former autopilot hardware leader Zheng Gao.

Cruise Exits the Race

GM’s decision to shut down Cruise surprised many industry observers. Despite initial success, operational challenges and safety incidents, including a pedestrian crash, led to the company’s downfall. CEO Mary Barra announced a pivot toward “personal autonomous vehicles,” leaving Cruise’s 2,300 employees in limbo.

Founder Kyle Vogt criticized GM’s move, highlighting the challenges of deploying and managing a large AV fleet. Cruise’s closure underscores the high stakes and risks involved in the competitive robotaxi market.