Amazon.com Inc.’s (AMZN) robotaxi unit Zoox said on Wednesday that it is opening its first-ever serial production facility for purpose-built robotaxis in the U.S. The facility, located near Zoox’s Foster City headquarters in Hayward,

Amazon is gearing up to make as 10,000 robotaxis annually at a sprawling plant near Silicon Valley as it prepares to challenge self-driving cab leader Waymo.

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.