Amazon to pay $1 billion+ for self-driving tech firm Zoox

Daniel Fowler
June 28, 2020

Amazon's acquisition is seen as a commercial move that will put the company at a more leveled playing field with Tesla in the self-driving arena, although Zoox has been oriented at ride-hailing, unlike Tesla, whose products go directly to customers.

Amazon has acquired self-driving-taxi firm Zoox for more than $1 billion, sources told The Information and The Financial Times.

Amazon CEO of global consumer Jeff Wilke said: 'Zoox is working to imagine, invent, and design a world-class autonomous ride-hailing experience.

Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others. It couldn't be learned whether Amazon also intends to use Zoox to automate vehicles that deliver goods to customers.

Amazon has stepped up its investment in the auto sector, participating in a $530 million funding round early previous year in self-driving vehicle startup Aurora Innovation Inc, a Reuters report had said previously.

As for Zoox, the company was founded in 2014, and as recently as 2018 it had a $3.2 billion valuation.

Amazon Reportedly Buys Self-Driving Startup Zoox For Over $1.2 Billion

Although extensive terms of Amazon's plans were not disclosed, we expect that Zoox's innovative technology will further support the e-tail giant's grocery business-whether that means innovating its logistics network for grocery delivery or bolstering its cashierless grocery store network.

Lux Capital, DFJ and Atlassian co-founder Michael Cannon-Brooks are some of the investors in the six-year-old startup.

Zoox settled a lawsuit with Tesla in April after admitting that some new employees it hired from Tesla possessed documents when they joined Zoox.

With a deep-pocketed parent like Amazon, Zoox should gain the runway it needs to keep up with its primary rival - Waymo, which originated as Google's self-driving auto project, and which counts Google owner Alphabet as its corporate owner.

Amazon has stepped up its investment in the auto sector, participating in a $530 million funding round early a year ago in self-driving vehicle start-up Aurora.

Tesla's autopilot feature, even in its "Full Self-Driving" options, are not yet fully autonomous and still require human interaction.

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Uttar Pradesh Chief Minister Yogi Adityanath also directed officials to provide best healthcare facilities to those injured. Along with this, instructions have been given to give immediate grant of Rs four lakh each to the families of the deceased.

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