(Reuters) -Amazon's ( AMZN ) Zoox has opened its first robotaxi serial production facility, it said on Wednesday, marking a crucial step towards launching a commercial robotaxi service that will compete with Alphabet's Waymo and Tesla. Zoox is testing in various U.S. cities with more than 20 vehicles and plans to launch the commercial services in Las Vegas this year, followed by San Francisco, where it seeks to expand areas of operation.

The operator currently tests in San Francisco's SoMa (South of Market) neighborhood and expects to onboard public riders soon."This expansion, plus the anticipated demand once rides open up to the general public, and additional market entrances in the coming years warrants this increase in robotaxi production," Zoox said in a statement. The 220,000-square-foot facility in Hayward, California, can assemble more than 10,000 vehicles per year at full capacity, though Zoox did not disclose initial production targets.The commercial launch will pit Zoox against Waymo, which has operated driverless taxis for years and is expanding nationwide, and Elon Musk's Tesla, which plans to debut its paid robotaxi service on June 22.Zoox operates the only purpose-built robotaxis on U.S. roads that resemble toaster ovens on wheels and lack manual controls such as steering wheels or pedals.

This contrasts with operators like Waymo that retrofit existing vehicles with cameras, sensors and other technology.Tesla plans to start its robotaxi service with Model Y SUVs equipped with self-driving software. The company also aims to introduce a purpose-built, two-seater "Cybercab" without manual controls. Efforts to commercialize fully autonomous vehicles have run into road blocks, including higher-than-expected costs and strict regulations. Companies such as Zoox, Waymo, and Tesla have faced federal investigations and recalls following collisions.