SAN DIEGO, California: Amazon-owned Zoox has become the first autonomous vehicle company to receive U.S. approval to commercially operate and charge passengers in robotaxis without steering wheels or other traditional human controls, marking a major milestone for the self-driving industry.

The National Highway Traffic Safety Administration (NHTSA) said on July 30 that it had exempted Zoox from federal safety rules requiring human driving controls, allowing the company to deploy its purpose-built robotaxis commercially.

Zoox said it will begin charging passengers in Las Vegas before expanding to other markets as it completes state regulatory requirements.

The approval is significant because Zoox's electric robotaxi was designed from the ground up for autonomous driving rather than being adapted from a conventional vehicle. The carriage-style vehicle features two rows of inward-facing seats and has a top speed of 75 mph (120 kph).

NHTSA Administrator Jonathan Morrison told Reuters the agency had authorized Zoox to deploy up to 2,500 vehicles in each of the next two years.

The company already operates test rides in parts of Las Vegas and San Francisco. The exemption now allows it to charge fares, subject to state and local approvals.

NHTSA said it determined the vehicle is as safe as comparable vehicles that comply with existing federal safety standards, even though those standards are being waived. Zoox will not be allowed to sell the vehicles to the public.

"We can say pretty clearly that the systems in place on the Zoox exceed the equivalent performance requirements of a compliant vehicle," Morrison said. "But we still want to make sure that the automated driving system will operate appropriately."

As part of the exemption, Zoox must meet additional reporting requirements covering issues such as crashes and vehicles stopping inappropriately on roads. The agency said it could revise or revoke the exemption if safety concerns emerge.

"We have the ability to pull the exemption if we see major safety issues," Morrison said.

NHTSA also requires that all remote operators be based in the United States and that Zoox publish maps showing where its vehicles operate.

The approval comes as companies including Tesla and Alphabet's Waymo race to expand autonomous ride-hailing services in the United States. Tesla has begun producing its steering-wheel-free Cybercab but has not detailed its regulatory approval plans.

The decision follows heightened scrutiny of autonomous vehicles after incidents involving robotaxis interfering with emergency responders, entering construction zones, violating traffic laws and encountering other safety issues. Earlier this month, Zoox recalled 105 autonomous vehicles to update software after identifying a potential issue with detecting heavy smoke during emergencies.