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E-commerce giant Amazon in talks to buy autonomous vehicle start-up Zoox

  • Dow Jones reported that Amazon is in advanced talks to buy Zoox for less than the US$3.2 billion valuation from 2018
  • Zoox is unlikely to sell for less than the US$1 billion that it has already raised, according to people familiar with the matter

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Amazon is in talks to buy driverless vehicle start-up Zoox, according to people familiar with the matter. Photo: AFP
Amazon is in talks to buy driverless vehicle start-up Zoox, according to people familiar with the matter, a deal that would accelerate the e-commerce giant’s automation efforts.

Other companies in the automotive and chip industries have also held talks with Zoox about a potential investment, the people said. At least one other business besides Amazon has offered to buy the company, they added.

Zoox is unlikely to sell for less than the US$1 billion that it has already raised, according to the people, who asked not to be identified discussing private negotiations.

“Zoox has been receiving interest in a strategic transaction from multiple parties and has been working with Qatalyst Partners to evaluate such interest,” the start-up said. It declined to comment on Amazon’s interest. A spokeswoman for Amazon declined to comment.

Zoox had outsize ambition and financial backing. The start-up wanted to build a fully driverless car by this year. However, after a 2018 funding round that valued Zoox at US$3.2 billion, the start-up’s board voted to oust chief executive officer Tim Kentley-Klay.

The executive criticised the move, saying the directors were “optimising for a little money in hand at the expense of profound progress.”

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