zoox self drive car

Amazon reportedly in talks to buy secretive Zoox for less than $3.2 billion

Amazon is in talks to buy driverless vehicle startup Zoox, according to people familiar with the matter, a deal that would accelerate the e-commerce giant’s automation efforts.

Other companies in the automotive and chip industries have also held talks with Zoox about a potential investment, the people said. At least one other business besides Amazon has offered to buy the company, they added. Zoox is unlikely to sell for less than the $1 billion that it has already raised, according to the people.
Zoox had outsized ambition and financial backing. The startup wanted to build a fully driverless car this year. However, after a 2018 funding round that valued Zoox at $3.2 billion.

Dow Jones reported that Amazon is in advanced talks to buy Zoox for less than the $3.2 billion valuations from 2018.

zoox companyAmazon is willing to spend heavily to automate its e-commerce business. The online retail giant purchased warehouse robot-maker Kiva Systems in 2012 for $775 million and now has tens of thousands of robots in warehouses around the world.

Paying drivers to deliver packages is still one of the biggest costs in the company’s operation. CEO Jeff Bezos announced plans for drone delivery in 2013, though they have yet to materialize at scale. Last year, Amazon revealed an experimental delivery robot called Scout in the Seattle area that rolls on sidewalks like a shopping cart.

Buying Zoox could help Amazon “manage rising shipping costs that we project will exceed $60 billion by 2025.

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