Amazon announced its new decision to buy Zoox, a six-year-old startup, in its bid to explore self-driving vehicles.
This isn’t the first time Amazon invested in auto startups, with Aurora Innovation and Rivian Automotive first in line. However, Zoox is the first company it acquired in the industry.
Zoox will continue to as a standalone business as Amazon will step in to “bring their vision of autonomous ride-hailing to reality.” While Amazon is yet to share its detailed plans, many predict that the tech giant may be looking at ways to offer better deliver services and self-checkout stores. Morgan Stanley analysts estimate $20 billion per year in savings once Amazon decides to fully automate its logistics through self-driving technology.
“Zoox is working to imagine, invent, and design a world-class autonomous ride-hailing experience,” shares Amazon CEO of Globe Consumer Jeff Wilke. “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.”