Amazon looks to ramp up its AV activity

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Amazon is in talks to acquire self-driving company Zoox in a move that Amazon bosses reckon could save the e-commence giant billions of dollars in shipping expenses every year. The Wall Street Journal reports that the deal values Zoox at less than 2018’s $3.2bn valuation.

Zoox was founded in 2014 by Tim Kentley-Kray and Jesse Levinson and is based in Foster City, California. Alistair Richmond, director of corporate trading at Osaka Matsui Management, said, “Shipping charges are one of Amazon’s biggest expenses and could exceed US$90bn in the coming years. Having an autonomous service could save the company over US$20bn a year.”

Michael Carter, head of global equities at Osaka Matsui Management, added, “Other firms in the automotive and chip industries have also held negotiations with Zoox about a possible investment. Aside from Amazon, at least one other company has offered to buy them. Zoox is not likely to sell unless it receives an offer over US$1bn, which it previously raised.”

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