Software Flaw Causes Amazon’s AV Unit, Zoox to Recall 300+ U.S. Vehicles

Amazon-owned autonomous driving startup Zoox is recalling 332 U.S. vehicles due to a software flaw. According to Reuters, the National Highway Traffic Safety Administration (NHTSA) said the flaw could cause the self-driving vehicles to cross yellow lines at the center of the road. The flaw could also cause Zoox vehicles to stop in front of oncoming traffic near intersections. These actions significantly increase the risk of collisions.

Zoox Fixed Error Through Software Update

Zoox launched a software update to fix the error. The software issue affected Zoox vehicles that operate on the automated driving system (ADS) version released before December 19, 2025.

Zoox recalled 332 vehicles months after the self-driving firm recalled 270 cars in May 2025 following an incident in San Francisco. The incident led to changes in the company’s software to improve pedestrian detection capabilities and enhance safety procedures.

The NHTSA certified Zoox vehicles for demonstration on public roads on August 6, 2025. The highway safety regulator also closed an inquiry into the company’s compliance with federal requirements that had started in 2022.

Following NHTSA’s certification, Zoox launched free robotaxi rides in Las Vegas in September 2025. The autonomous vehicle company had been operating a test loop ride in the state from a Las Vegas casino.

U.S. Regulators Tighten ADS Scrutiny

As more companies get into the industry, regulators are paying more attention to autonomous driving systems. In October 2025, the NHTSA launched a probe into Tesla’s Full Self-Driving (FSD) software over traffic violations. The regulator commenced the probe after receiving over 50 reports relating to crashes and traffic-safety violations.

In the robotaxi industry, Zoox is taking on well established competitors like Waymo and Tesla. Waymo, which suspended robotaxi service in San Francisco earlier this week due to a citywide power outage, plans to expand to London in 2026.

The latest recall tests Zoox’s ability to operate under the scrutiny of regulators. The success of the company depends on its ability to prove that it can identify and isolate glitches and resolve them fast to prevent systemic problems.

What the Zoox Recall Means for Amazon

Amazon acquired Zoox for $1.3 billion five years ago as its autonomous vehicle unit. For the e-commerce giant, the recall of Zoox autonomous vehicles in the U.S. challenges the rationale behind this acquisition.

The unit was meant to anchor Amazon’s future mobility ambitions in ride-hailing and autonomous delivery. A software error that increases the risk of crash undermines the main goal of autonomous vehicles, which is to provide safer and reliable transportation.

Such a flaw also raises the critical question of whether Zoox can achieve the software maturity and earn the regulatory trust required to justify large investment. Amazon is betting on Zoox to transform logistics and create a new revenue stream. A delay in these plans means a drag on its $1.3 billion bet.