Amazon negotiating Zoox takeover to boost automation

Andrew Cummings
May 31, 2020

Amazon as well as Zoox remain in innovative settlements of a bargain that would certainly value the startup at much less than the $3.2 billion (aboutRs 24,196 crores) it was approximated to be worth in a financing round 2 years back, the Journal reported, pointing out unrevealed individuals with expertise of the issue.

E-commerce giant Amazon is reportedly in talks to buy self-driving startup Zoox, the Wall Street Journal reported on Tuesday. According to WSJ, "A successful deal could give new life to a once-high-profile startup that has seen its fortunes dim as it struggled to raise money".

The idea was to fabricate a completely driverless vehicle this year.

"Zoox has been receiving interest in a strategic transaction from multiple parties and has been working with Qatalyst Partners to evaluate such interest", the startup said.

Last year, Amazon invested along with Silicon Valley venture firm Sequoia Capital in self-driving startup Aurora Innovation Inc., a startup led by the former heads of Google's driverless vehicle project and Tesla's Autopilot team.

The company's rise and fall mirrored the explosion of interest in autonomous-vehicle technology and subsequent slower-than-expected pace of deploying robot vehicles.

Co-founder Tim Kentley-Klay was initially extremely effective at winning over investors, using an air of mystery in the press and possessing a showman's knack for stoking excitement.

"In 2019, Business Insider's Mark Matousek took a test ride in one of [Zoox's] self-driving vehicles, and described the experience as more comfortable than taking an Uber or a Lyft", Shona Ghosh writes for Business Insider.

Buying Zoox could help Amazon "manage rising shipping costs we project will exceed $60bn by 2025", say Bloomberg analysts.

Different organizations in the vehicle and chip ventures have likewise held talks with Zoox about potential speculation.

He was replaced as chief executive early previous year by Aicha Evans, who had been chief strategy officer at Intel Corp.

Zoox is unlikely to sell for less than the $1bn it has already raised. Amazon also backed Rivian Automotive Inc., the electric pickup and SUV maker.

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