According to a report published by The Financial Times, the e-commerce giant Amazon has stated that it is purchasing self-driving car startup ‘Zoox’ in a deal expected to be worth nearly $1.2 billion dollars. Zoox was established back in 2014 and is known for being one of the best in the car business.
The confidential startup has been operating on an auto-pilot ride-hailing service for quite a lot of time now.
The company intends to establish its autonomous fleet from scratch, presenting a cart like prototype in 2018. Because of the secrecy of the startup project, not much information related to it can be found. Though, the company has been seen experimenting with its self-driving software using Toyota Highlanders on the bustling streets of San Francisco.
Amazon Purchases Self-driving Vehicle Startup ‘Zoox’
Following the deal, Amazon will continue to invest in Zoox and let it work independently. Currently, the firm designing a car without a defined front or back, enabling it to easily move in two directions. When the project was initiated, it was expected that the autonomous fleet would be ready by 2020, however, software delays have driven the project further into the future.
On the other hand, Amazon clarifies that it doesn’t wish to intervene with the startup’s goals. In a press release, the company stated that “We’re acquiring Zoox to help bring their vision of autonomous ride-hailing to reality,”.
Experts believe that Zoox’s expertise could be also utilized to design autonomous technology for its delivery service as well. If prosperous, such a mechanism could minimize the company’s shipping expenses considerably by eradicating human drivers and allowing large trucks to run continuously without any break. This proposed mechanism could improve Amazon’s e-commerce business efficiency and efficacy by providing swifter shipments to its customers.