Amazon to Pay More Than $1 Billion for Self-Driving Car Developer Zoox
Amazon is reportedly on the verge of announcing a deal to acquire self-driving startup Zoox for over $1 billion, Theinformation Reported
The deal would give Amazon control of the nearly 1,000-person startup that has been developing an electric self-driving vehicle. The deal could be announced as early as today. Rumors of the acquisition first emerged last month, when it was reported that Amazon would acquire Zoox for less than the $3.2 billion it was valued at back in July 2018.
The startup describes itself as a company focused on building “autonomous mobility from the ground up,” which includes self-driving software for vehicles to safely navigate city streets.
To date, the startup has raised $955 million over four funding rounds. Previous investors include Alium Capital, Blackbird Ventures, and Grok Ventures.
It is not known, however, whether or not the startup’s technologies would be directed towards package delivery only, or whether or not Amazon is keen to explore the wider applications of self-driving solutions — such as intelligent vehicles and passenger transport.
According to The Financial Times, Amazon is expected to let Zoox run as an independent subsidiary after the acquisition, similar to how Twitch currently operates. Amazon is expected to have to invest billions to bring Zoox’s vehicles to market.
This will not be the first investment Amazon has made in self-driving car technology. Last year the eCommerce giant took part in a funding round for Aurora Innovation, an autonomous tech startup helmed by the former head of Google’s self-driving car project. Amazon has also invested in electric vehicle startup Rivian.