Amazon.com Inc.’s driverless-car business will be allowed to commercially deploy as many as 2,500 vehicles annually in the U.S. over the next two years, clearing the way for more robotaxis in a market dominated by Alphabet Inc.’s Waymo.

The National Highway Traffic Safety Administration announced Thursday that it will give a temporary exemption allowing Zoox to proceed with its rollout, “subject to an enhanced, adaptable oversight structure that can evolve as Zoox’s technology advances.” Robotaxi operators require federal approval for self-driving vehicles that lack traditional human controls, but NHTSA has been taking steps to remove certain requirements that were written with human drivers in mind.

Zoox self-certified the safety of its driverless car in 2022 and had previously received an exemption for research and demonstration purposes. The company currently operates rides in Las Vegas and San Francisco and is testing in several other cities.

Zoox makes a rectangular vehicle that lacks a steering wheel or pedals and allows for bidirectional driving. It fits as many as four passengers in carriage-style seating.

Waymo hasn’t required the same exemptions since its current fleet is made up of cars with steering wheels and pedals.

Earlier this month, Zoox issued a software recall across its fleet of 105 vehicles operating on public roads after one of its robotaxis struggled to navigate through heavy smoke, the latest in a string of incidents involving autonomous vehicles at emergency scenes.

NHTSA is working to develop new safety requirements governing how autonomous vehicles behave on the road. The changes could help clear the path for purpose-built vehicles made by Zoox, Waymo and Tesla Inc. The agency wants to cut through red tape as part of a broader effort to help self-driving cars reach the road in larger numbers.

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