Amazon in talks to acquire autonomous-driving startup Zoox

The acquisition would breathe new life into the “once-high-profile startup”

The Wall Street Journal’s reporting that Amazon is in “advanced talks” to acquire autonomous-driving company Zoox. The companies are reportedly discussing an acquisition that would cost Amazon less than the $3.2 billion valuation Zoox received during a 2018 funding round. According to those familiar with the closed-door talks, the deal between the two companies is still weeks away and “could still fall apart.”

Founded in 2014, Zoox has focused its efforts on developing the hardware and software needed to create electric-powered robot taxis that could be summoned by a smartphone app. Over the years, though, Zoox has struggled to reach the funding level needed to achieve its goals. According to WSJ, “A successful deal could give new life to a once-high-profile startup that has seen its fortunes dim as it struggled to raise money.”

While Amazon has yet to comment on the news, a Zoox spokesperson shared with WSJ that the startup “has been receiving interest in a strategic transaction from multiple parties and has been working with Qatalyst Partners to evaluate such interest.”

Zoox emerged at a time when Silicon Valley investors were intrigued by the thought of autonomous taxis and delivery vehicles. Ultimately, interest in the company has waned as co-founder Tim Kentley-Klay was unable to secure the kind of investments Zoox needs to keep pace with its better-funded competitors. The Zoox board removed Kentley-Klay from the company in 2018.

Should Amazon acquire Zoox, it wouldn’t be the company’s first foray into driverless tech. Amazon previously created a team devoted to driverless technology and has made several investments within the space over the last few years. The company recently participated in Aurora Innovation Inc.’s $530 million funding round and made an investment in electric-car maker Rivian Automotive.

Featured Resources

How virtual desktop infrastructure enables digital transformation

Challenges and benefits of VDI

Free download

The Okta digital trust index

Exploring the human edge of trust

Free download

Optimising workload placement in your hybrid cloud

Deliver increased IT agility with the cloud

Free Download

Modernise endpoint protection and leave your legacy challenges behind

The risk of keeping your legacy endpoint security tools

Download now

Recommended

How to think like a Digital CFO
Whitepaper

How to think like a Digital CFO

13 Jan 2022
Amazon faces allegations it "brazenly" underreported COVID-19 cases in its warehouses
business management

Amazon faces allegations it "brazenly" underreported COVID-19 cases in its warehouses

2 Dec 2021
AWS and IBM join forces to reduce data barriers in the energy industry
Software

AWS and IBM join forces to reduce data barriers in the energy industry

15 Nov 2021
In praise of the early adopters
Hardware

In praise of the early adopters

2 Nov 2021

Most Popular

How to move Microsoft's Windows 11 from a hard drive to an SSD
Microsoft Windows

How to move Microsoft's Windows 11 from a hard drive to an SSD

4 Jan 2022
How to boot Windows 11 in Safe Mode
Microsoft Windows

How to boot Windows 11 in Safe Mode

6 Jan 2022
Microsoft Exchange servers break thanks to 'Y2K22' bug
email delivery

Microsoft Exchange servers break thanks to 'Y2K22' bug

4 Jan 2022