Last week, The Wall Street Journal reported Amazon was in “advanced” discussions to purchase Zoox at a significant discount to the $3.2 billion valuation it achieved during a 2018 funding round. A company spokesperson said Zoox would “not comment on rumors or speculation” regarding a potential sale.
Succeeding in any one of its three simultaneous endeavors would be a capital- heavy proposition for Zoox, which has amassed $955 million to date. During the coronavirus pandemic, with fresh funding difficult to come by, accomplishing all three has become cost-prohibitive.
“It’s a tough business, and they chose a particularly tough path,” Sam Abuelsamid, principal analyst at Guidehouse Insights (formerly Navigant Research), told Automotive News. “From a purely technical standpoint, it’s a wise decision. Anyone who succeeds in this will use vehicles specifically designed for robotaxi service. From a business perspective, it’s a challenge.”
Whether Amazon or other prospective suitors would…