It looks like e-commerce/tech giant Amazon might soon expand its business in the field of autonomous cars. That's because Amazon is supposedly in talks in buying autonomous vehicle startup Zoox Inc.
According to a report by Bloomberg, Amazon's plans to buy Zoox is actually part of the company's plan to further upgrade its automation efforts. The company is willing to spend big money in order to automate its e-business as more and more customers shift towards the digital market.
With Amazon still relying on drivers to deliver packages (which is actually one of the company's biggest costs), having Zoox provide autonomous vehicles could save the company money in deliveries.
But just how much Amazon is willing to spend in order to have Zoox? Apparently, the autonomous vehicle startup has already raised over $1 billion (about PhP 50 billion). This means that it is highly unlikely that Zoox will be bought for less than $1 billion. A steep price that maybe, but with Amazon already being worth $1 trillion last February, the e-commerce giant has more than enough funds to buy the startup.
Zoox has been busy testing out its self-driving vehicle for the past few years and is actually looking at Las Vegas as a target market for its autonomous fleet. Just last month, Zoox held extensive testing of its autonomous vehicles in Sin City as a way to demonstrate that they are more than just self-driving cars since they're also experts in robotics, renewable energy, and zero-emissions technologies.
The company actually wanted to start building a fully driverless car this year. However, after a 2018 funding round the startup's value to $3.2 billion, Zoox decided to change plans after the company's board ousted CEO Tim Kentley-Klay, replacing him with Aicha Evans last year.
With Amazon purported to be already in advanced talks with Zoox, perhaps the e-commerce/tech giant might be able to buy the startup for less than (or near) $3.2 billion.