The self-driving car startup Zoox is being acquired by Amazon in a deal that is expected to be worth more than $1 billion. With this purchase, Amazon will take over the almost 1,000-person startup that has been working on creating an electric self-driving car.
The transaction was initially mentioned in rumors last month, when it was stated that Amazon will buy Zoox for less than the $3.2 billion it was originally estimated to be worth in July 2018.
“Zoox is working to imagine, invent, and design a world-class autonomous ride-hailing experience,” stated Jeff Wilke, CEO of Amazon Global Consumer. “Like Amazon, Zoox is passionate about innovation and about its customers, and we’re excited to help the talented Zoox team to bring their vision to reality in the years ahead.”
Amazon has not disclosed the amount it is paying Zoox, but rumors indicate that this is one of the company’s largest acquisitions ever and its largest investment to date in self-driving car technology.
The Financial Times reported that Amazon would use the acquisition to create an autonomous ride-hailing fleet to rival the likes of Alphabet’s Waymo. Prior to the announcement, The Information conjectured that Amazon could use the technology for autonomous deliveries, similar to its current robot and drone delivery projects.
The company Zoox has been working on a bi-directional vehicle that can move comfortably in both directions and does not have a steering wheel or a recognizable front or rear end. Testing is scheduled to begin in 2020.
