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Amazon will reportedly pay more than $1.2 billion to acquire Zoox<\/a>, the Foster City, California self-driving technology company, the Financial Times (FT) reported<\/a>. <\/strong><\/p>\n While the purchase could fuel Amazon’s delivery fleet, a source familiar with the deal told the newspaper it could signal the eCommerce giant’s entry into ride-hailing.<\/p>\n The source said Amazon would collaborate with Zoox to create a ride-hailing fleet, taking on Waymo<\/a> Co, the California-based self-driving industry leader backed by Alphabet, Google’s parent company.<\/p>\n Still, some analysts say the deal is more about Amazon’s mission to fold autonomous technology into its delivery network. Last year, Amazon participated in a $530 million funding round for autonomous technology firm Aurora Innovation<\/a>.<\/p>\n Last month, PYMNTS reported<\/a> Amazon was in talks to buy Zoox. Founded in 2014, it was valued at $3.2 billion four years later.<\/p>\n “We believe $1.1 billion would be a fair price for the company, representing a 65.6 percent haircut from its previous post-money valuation of $3.2 billion,” said Asad Hussain, a mobility tech analyst at PitchBook, in a note in May.<\/p>\n Before COVID-19 put the kibosh on it, Zoox planned to launch a ride-sharing service pilot program this year, the paper reported.<\/p>\n But the industry faced challenges even before the pandemic, and Waymo is the only company to launch a true driverless service, FT reported. Today, its market value is more than $30 billion.<\/p>\n In May, Morgan Stanley analysts said the potential for Amazon to develop a more efficient long-term delivery network with Zoox technology could save the company $20 billion a year.<\/p>\n If it closes, the deal would represent Amazon’s second-biggest acquisition since the 2009 purchase of online shoe retailer Zappos for $1.2 billion. Amazon’s biggest deal came three years ago with the acquisition of Whole Foods, the upmarket grocer, for $13.7 billion, according to Dealogic.<\/p>\n Zoox has 1,000 employees and has been working on a self-driving so-called “bi-directional” vehicle with no steering wheel. It can drive in any direction and quickly reverse course if stuck on a narrow street, the company has said.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n Tags:<\/b> Pymnts<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"See Campaign: <\/strong>https:\/\/aurora.tech\/<\/a>
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Amazon will reportedly pay more than $1.2 billion to acquire Zoox, the Foster City, California self-driving technology company, the Financial Times (FT) reported. While the purchase could fuel Amazon’s delivery fleet, a source familiar with the deal told the newspaper it could signal the eCommerce giant’s entry into ride-hailing. The source said Amazon would collaborate with Zoox to create … Continue reading Amazon Adds Driverless Car Maker Zoox To Its Portfolio For $1.2B<\/span><\/a> Continue Reading