Amazon Can Benefit From Its Zoox Acquisition Better Than Anyone Else
Amazon (NASDAQ: AMZN) has announced it's agreed to acquire Zoox, a company building autonomous vehicles from the ground up with a robotaxi service in mind. While neither company disclosed terms of the deal, the price is expected to be more than $1 billion, but less than the $3.2 billion valuation of Zoox's last round of funding in 2018. And Amazon will have to invest a lot more into the money-losing business as it builds and tests its technology, products, and services.
Amazon will reportedly allow Zoox to continue its independent operations, much like it's allowed Twitch to remain its own entity. With Amazon's funding, Zoox will have a long runway to build out its driverless vehicles.
But the real value of the acquisition will stem from Amazon's ability to integrate Zoox's technology with its existing operations, namely its growing logistics network. As a result, Amazon's investments in Zoox could start showing returns for shareholders much more quickly than other companies' efforts in autonomous vehicles.
Source Fool.com
