Amazon.com Inc is reportedly came to an agreement to acquire self-driving startup Zoox Inc for an amount of over $1 billion, as reported The Information and The Financial Times on Thursday.
The recent move would help e-commerce giant expand its reach to a technology that could be essential for its current business model as well as for its non-traditional business plans.
Both the journals did not mention financial terms of the deal including the purchasing price, but noted that the tech giant is expected to disclose the acquisition agreement details at the time of announcing the deal. Amazon is likely to be announcing it as early as Friday.
Majority of people who invested in Zoox are reportedly getting their investments back and some of those investors are even making positive returns. Some of key Zoox investors include Michael Cannon-Brookes, CEO and co-founder of Atlassian, Lux Capital and DFJ.
The news about the deal first emerged last month when the Wall Street Journal reported that Amazon and Zoox are in initial talk for exploring an acquisition deal. The Journal at the time also noted that Zoox could be valued under $3.2 billion of the valuation it had achieved in a 2018 funding round.
In recent years Amazon came accelerating its car-sector investments and the current deal is not only its biggest in autonomous vehicle technology but is also one of its biggest acquisitions.
But it is unclear the exact purpose Amazon would be using that technology for. Amazon is currently using that technology for autonomous deliveries through its robot and drone delivery initiatives. The Information is in view that the company could use it to further expand its autonomous deliveries. On the other hand, the Financial Times said that Amazon will use the technology so acquired for its autonomous ride-hailing efforts as the company is intending making fleet of its own like Alphabet’s Waymo.