Amazon's autonomous vehicle subsidiary Zoox has secured a landmark federal exemption that clears the way for the first paid rides in a robotaxi designed entirely without a steering wheel or pedals. The approval, granted by the National Highway Traffic Safety Administration (NHTSA), marks a pivotal step for the industry as regulators grapple with vehicles that defy traditional automotive norms. Main Developments NHTSA granted Zoox an exemption from federal motor vehicle safety standards requiring human controls, allowing the company to deploy up to 2,500 vehicles annually over the next two years for commercial service. The agency's administrator, Jonathan Morrison, confirmed that Zoox had met safety requirements, though he stressed a staggered rollout with no immediate sales to the public. Zoox will begin charging customers for rides first in Las Vegas, after securing state and local approvals, expanding to additional markets as it completes state-level requirements. The company has already offered free rides in Las Vegas and San Francisco, with more than half a million people having ridden in its vehicles to date. Read also: Why a straw-licking prank cost a French teen nearly $500 in Singapore Additional reporting obligations have been placed on Zoox, including mandatory disclosure of crashes or instances where vehicles stop inappropriately on roadways. Morrison told Reuters that while Zoox's systems exceed equivalent performance requirements, the agency wants to ensure the automated driving system operates appropriately over time. Background Zoox's vehicles are rectangular, carriage-style cars with passenger seats facing each other, capable of speeds up to 75 miles per hour. The design eliminates the driver's seat entirely, a radical departure from conventional cars that required NHTSA to adapt decades-old safety regulations written before self-driving technology existed. Amazon acquired the self-driving startup for $1.2 billion, and the company hopes to eventually manufacture up to 10,000 robotaxis annually at a plant near Silicon Valley. Zoox competes with Waymo, owned by Alphabet, which already operates in multiple cities using electric Jaguar SUVs that retain steering wheels and pedals for manual control. Earlier this month, Morrison issued a letter telling autonomous vehicle developers to immediately address what NHTSA identified as a clear pattern of driverless vehicles interfering with law enforcement and first responders. Zoox subsequently recalled its fleet of 105 autonomous vehicles to update software that might not detect heavy smoke during active emergencies. Why It Matters This approval establishes a regulatory precedent for vehicles that fundamentally break from automotive design conventions, potentially accelerating development of other purpose-built robotaxis. Advocates argue that outdated safety rules written before self-driving technology can impede innovation in vehicle design. Critics warn that loosening restrictions could turn city streets into real-world technology experiments, citing incidents where driverless vehicles have struck pedestrians or animals, or stalled in roadways blocking emergency vehicles. The Advocates for Highway and Auto Safety group expressed concern that Zoox provided insufficient data to demonstrate safe operation without standard controls, with general counsel Peter Kurdock telling the AP that the company offered "lots of promises, lots of glossy language" but no supporting data. Zoox CEO Aicha Evans called the approval an important milestone reflecting a shared commitment to enabling innovation while maintaining safety standards. The decision could influence how NHTSA handles similar exemption requests from other autonomous vehicle developers. What's Next Zoox will focus on securing state and local approval in Las Vegas to begin charging for rides, with additional markets following as it completes requirements elsewhere. The company must comply with NHTSA's enhanced reporting requirements for crashes and roadway incidents, and demonstrate that its vehicles can safely interact with emergency responders. Amazon's plans to scale production to 10,000 vehicles annually remain contingent on continued regulatory approvals and operational data showing the vehicles perform safely in diverse conditions. The broader autonomous vehicle industry will watch closely as Zoox transitions from free rides to commercial service, potentially setting benchmarks that other developers must meet to secure similar exemptions.