• General
  • May 27, 2020
  • 4 minutes read

Amazon In Talks To Acquire Zoox: Report

Zoox CEO Aicha Evans. Photo credit: Steve Jennings/Getty Images for TechCrunch, under Creative Commons license Amazon is in talks to…

Zoox CEO Aicha Evans.
Photo credit: Steve Jennings/Getty Images for TechCrunch, under Creative Commons license


Amazon is in talks to acquire self-driving startup Zoox, according to a report from the Wall Street Journal. The Journal reports Amazon and Zoox are negotiating a deal that would value Zoox at less than the $3.2 billion valuation which the company got in its last financing round. Zoox, which was founded in 2014, has as of late struggled to raise more funding despite already having raised some $955 million in funding. Developing self-driving cars is expensive, and even with nearly $1 billion raised, Zoox’s total funding isn’t on par with some of its peers such as GM Cruise, Alphabet’s Waymo, and Ford’s Argo AI. An Amazon acquisition would hypothetically give new life to Zoox, which as opposed to fitting already existing cars with self-driving equipment like many of its peers do, has decided to build its own self-driving cars from the ground up.

Amazon isn’t new to the self-driving world, having led a $530 million financing round for Aurora Innovation, another well-known self-driving startup, in February of last year. Amazon is also an investor in electric vehicle upstart Rivian, which itself has self-driving ambitions.

A few years ago, Amazon established a team dedicated to self-driving technology, motivated in part by a will to handle more of its deliveries itself. If Amazon really acquires Zoox, then the company may just become the e-commerce giant’s major self-driving division. Amazon has very deep pockets and could also provide much more funds for Zoox’s ambitions.




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