Amazon is in talks to buy self-driving car startup Zoox in a move that would advance the eCommerce giant’s reach in autonomous vehicle technology, according to a Tuesday (May 26) report in the Wall Street Journal, citing sources familiar with the matter.
In a 2018 funding round, Zoox was valued at $3.2 billion; a sale now would likely reflect a decreased valuation. “We believe $1.1 billion would be a fair price for the company, representing a 65.6% haircut from its previous post-money valuation of $3.2 billion,” said Asad Hussain, a mobility tech analyst at PitchBook, in a note.
Zoox was founded in 2014 and has been working to develop electric-powered robot taxis. According to the Financial Times, the startup is aiming for a uniquely challenging accomplishment: simultaneously creating driverless technology, a ride-hailing network and a bespoke autonomous vehicle at scale.
Meeting all three of these goals would require vast capital, and Zoox lacks the automotive partners that facilitate other startups like Cruise (GM) or Argo AI (Volkswagen and Ford).
The pandemic has hit Zoox hard, forcing it to halt the test fleets that had become a common sight in Las Vegas and San Francisco and lay off 10 percent of its workforce.
Amazon has established a team devoted to driverless vehicle technology. In 2019, it participated in a $530 million funding round for autonomous technology firm Aurora Innovation.
In other self-driving car technology, Toyota invested $400 million in the Chinese firm Pony.ai.
The newest funding totals $462 million and puts a $3 billion value on the Chinese firm. Toyota is using its own artificial intelligence (AI) division, known as the Toyota Research Institute, to develop its own self-driving technology. The carmaker, like other international automakers, does not have the ability to sell autonomous vehicles in China if it doesn’t find a local parent, as the government has only granted digital map licenses to Chinese firms.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI