Amazon Invests in Autonomous Vehicle Makers Aurora and Zoox
Despite dwindling sales and unpredictable sales and stooping growth being the norm across some businesses and industries, some businesses such as Amazon has been fortunate to become an exception and its recent business development of acquiring autonomous car company Zoox is an affirmation by all its right. The deal has been rumored to have been completed at a hefty deal worth over $1 billion.
The newly acquired autonomous vehicle, Zoox is based in California’s Foster City. The company took off in 2014 and since then has been a successful venture, also raising $955 million as requisite funding obtained from diverse investors such as Lux Capital, Blackbird Ventures and Grok Ventures.
While talking about Amazon’s interest in the autonomous vehicles sector, it appears that the company’s interests are persistent, rightly supported by its previous investment of Rivian followed by Aurora which is also a self-driving vehicle veteran. In the words of Amazon CEO, Jeff Wilke, Zoox is continuing its investments towards designing and developing work-class, high end autonomous vehicles for a rich in-car experience. This venture with Amazon is expected to improve Zoox’s commitment and future endeavors.
However, speculations are also rife that Amazon will be re-developing and using Zoox technology to further expand and grow its main business comprising logistics, packaging and delivery. Statements from close sources affirm that Amazon has made an upfront payment of over $1.2 billion and this acquisition in particular stands out as one of the most cost intensive ventures. It is also expected that Amazon’s recent investments in autonomous vehicles is its long-standing business objective to up its delivery game. Additionally, with novel corona virus hitting hard, Zoox failed to meet its soaring expenses, and failed to carry out its regular testing of cars, leading to massive business loss.