Amazon moves for driverless car startup

AMAZON is in talks to buy driverless vehicle startup Zoox, according to sources, a deal that would accelerate the e-commerce giant’s automation efforts.

Other companies in the automotive and chip industries have also held talks with Zoox about a potential investment. At least one other business besides Amazon has offered to buy the company.

Zoox is unlikely to sell for lessthanthe$1bnithas already raised.

“Zoox has been receiving interest in a strategic transaction from multiple parties and has been working with Qatalyst Partners to evaluate such interest,” the startup said.

It declined to comment on Amazon’s interest. A spokeswoman for Amazon also declined to comment.

Zoox had big ambition and financial backing. The startup wanted to build a fully driverless car by this year. However, after a 2018 funding round that valued Zoox at $3.2bn, the startup’s board voted to oust CEO Tim Kentley-Klay. The executive criticised the move, saying directors were “optimising for a little money in hand at the expense of profound progress.”

Dow Jones reported that Amazon is in advanced talks to buy Zoox for less than the $3.2bn valuation from 2018.

Amazon is willing to spend heavily to automate its business. The online retail giant bought warehouse robot-maker Kiva Systems in 2012 for $775m and now has tens of thousands of robots in warehouses.

Paying drivers to deliver packages is still one of the biggest costs in the operation, though. CEO Jeff Bezos announced plans for drone delivery in 2013, though they have yet to materialise at scale. Last year, Amazon revealed an experimental delivery robot called Scout in the Seattle area that rolls on pavements like a shopping trolley.

Buying Zoox could help Amazon “manage rising shipping costs we project will exceed $60bn by 2025,” say Bloomberg analysts.