News By/Courtesy: Daksh Dave | 30 Jun 2020 14:49pm IST

HIGHLIGHTS

  • Amazon
  • Self drive
  • Acquisition

Amazon agreed to pay Zoox, which is a manufacturer of autonomous vehicles, for around $1.2 billion. Remember the startup raised $1 billion from venture capitalists. To put it another way, the deal was not accretive. Amazon has invested over the years in several self-driving vehicle companies such as Aurora Technology and Rivian Automotive. But this is the company's first space. Amazon acquisition to be involved in this for the last mile delivery. It makes perfect sense because this is the logistically hardest and most costly part of the trip, and a dramatic cost reduction would be getting rid of human labor. Future trends: AVs are going to occur. Full Level 5 autonomy (no safety driver, no point at all) is much further away than people generally think. It makes sense for Amazon to invest in this because of the huge capital they can throw at it and a very long horizon. And they're going to have such a huge fleet and high utilization, so it makes sense to own rather than buy vehicles from the 3rd party.

Gautam Narang, CEO, and co-founder of Gatik said, "The deal is a validation of the AV delivery area. The last decade has been heavily focused on warehouse automation, and this decade is all about automating on-road transport networks. Amazon made the right move with its purchase of Kiva in 2012. Their purchase of Zoox is a clear indication that they are targeting the same impact with autonomous delivery. It's also in line with everything we hear from our customers and what we've known for some time — optimizing the automation micro-enforcement center distribution model is the only way that retailers will be able to keep up with consumer demand and continue to add to their profit margins.

Amazon's goal is to drive shipping costs as close as possible to $0. Its greatest cost is to pay for people. The more automated it is, the cheaper it is for Amazon and the cheaper it is for us consumers. Amazon made the right move with its purchase of Kiva in 2012. Their purchase of Zoox is a clear indication that they are targeting the same impact with autonomous delivery. It's also in line with everything we hear from our customers and what we've known for some time — optimizing the automation micro-enforcement center distribution model is the only way that retailers will be able to keep up with consumer demand and continue to add to their profit margins. Amazon's goal is to drive shipping costs as close as possible to $0. Its greatest cost is to pay for people. The more automated it is, the cheaper it is for Amazon and the cheaper it is for us consumers.

THIS ARTICLE DOES NOT INTEND TO HURT THE SENTIMENTS OF ANY INDIVIDUAL, COMMUNITY, SECT, OR RELIGION ETCETERA. THIS ARTICLE IS BASED PURELY ON THE AUTHOR'S PERSONAL VIEWS AND OPINIONS IN THE EXERCISE OF THE FUNDAMENTAL RIGHT GUARANTEED UNDER ARTICLE 19(1)(A) AND OTHER RELATED LAWS BEING FORCE IN INDIA, FOR THE TIME BEING. 

Section Editor: Pushpit Singh | 30 Jun 2020 17:16pm IST


Tags : Automobile

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