Amazon has finally announced that it has purchased Zoox. This take over comes after months of rumours. Zoox is a San Francisco based start-up which focuses on autonomous driving. Amazon has not released the specifics of the deal. However, the Financial Times have reported that the takeover cost Amazon more than $1.2 Billion. If the report by Financial Times is accurate then this deal will be among the biggest deals Amazon has done.
Amazon’s CEO of Global consumer, Jeff Wilke, in an interview stated that just like Amazon, the people of Zoox are passionate about innovation. He continued by saying the people at Zoox are also passionate about the customers. The CEO ended the interview by saying Amazon will help the talented team of Zoox to “bring their vision to reality” in the upcoming years.
Zoox was once considered to be at the forefront of the autonomous driving car technology. However, the San Francisco based start-up has faced certain setbacks in its six years. Majority of these set backs happened due to the high turnover rate in its management. For several months, the start-up was actively seeking for a buyer. Just two years ago Zoox was valued at $3.2 Billion. This means that the possible deal of just $1.2 Billion is a considerable price drop.
Aicha Evans, the CEO of Zoox mentioned in a statement that this acquisition will solidify the company’s impact on the autonomous driving market. Aicha continued and said that the company had made great strides. She further stated that in order to realise the company’s vision, they were working everyday. With their approach towards a safe, autonomous mobility with purpose. The team deserves the credit for their hard work.
How Will amazon use this technology?
There is a lot of speculation as to how does Amazon intends to use Zoox. This is because it is not yet clarified how Amazon will use Zoox’s technology. The speculations suggest that Amazon might implement it in its planned project of all-electric delivery vans.