Early last week, rumors that e-commerce giant Amazon would be buying an autonomous vehicle startup started to surface.
By the end of the week, itwas a done deal.
But what is Amazon doing buying an autonomous vehicle startup?
According to aFinancial Times report, Amazon recently paid $1.2 billion to buy self-driving tech up-and-comer, Zoox.
This makes it Amazons biggest foray into self-driving tech, and one of the companys biggest acquisitions ever.
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Zoox was formed in 2014 and is based in California.
The company was started with the goal of creating an autonomous vehicle specifically for the robotaxi market.
What makes Zoox unique though, is that the company is developing its own vehicle too.
Most self-driving companies focus on developing software and sensors to retrofit to existing vehicles.
After some unfortunate layoffs due to coronavirus, Zoox now has around 900 staff working on its self-driving tech.
I doubt thats the real reason, companies dont buy other companies just to help them out.
Amazon could have invested, but no, it bought the company.
Something tells me theres more going on here than weve been told.
What exactly though, remains unclear.
Amazon doesnt really have much to gain on its present business model by building a robotaxi division.
That makes its acquisition of Zoox look like pocket change in comparison.
For Amazon, an e-commerce company, the real money to be made is in delivery systems.
Rivian is developing one of the most hotly anticipated electric trucks, the R1T.
But according to numerous reports, Zooxs foray intovehicle development has left a lot to be desired.
Think more along the lines of Nuros painfully cute driverless delivery robot, and I think were getting somewhere.
Amazons got all the pieces of the puzzle, it just needs to put them together.
Story byMatthew Beedham
Matthew is the editor of SHIFT.
He likes electric cars, and other things with wheels, wings, or hulls.
