Amazon will acquire Zoox for over $1.2 billion. Zoox is a self-driving start-up, and this acquisition signals Amazon’s expansion into the autonomous vehicle space.
Tesla CEO Elon Musk trolled Amazon Founder and CEO Jeff Bezos on twitter by calling him a “Copy cat” after the deal was announced. An interesting twist to this particular situation is that Zoox had settled a lawsuit with Telsa in April. The lawsuit stated that the employees Zoox had hired from Tesla had proprietary documents when the joined the startup. Now that same company has been acquired by the giant tech conglomerate Amazon. This was not the first time Musk had disparaging words for Bezos. Earlier this month he tweeted that it was “Time to break up Amazon. Monopolies are wrong!”
Giant conglomerates like Walmart and Microsoft are trying to compete within their respective industries. Microsoft has been a world leader in computing for decades. Amazon however has also become one of the largest cloud computing companies in the world. In 2019, Amazon appealed the Pentagon’s $10 Billion JEDI Cloud Contract Award to Microsoft
Yet, it is hard for any company to compete against Amazon. Amazon is an entity that has complete vertical integration. Amazon creates companies that can also advertise on the Amazon platform. Those smaller companies can immediately and seamlessly integrate with the Amazon supply chain. Those Amazon companies possess innate competitive advantages that smaller businesses can never achieve.
It will be fascinating to see Amazon’s expansion into autonomous vehicle sector. Hopefully several companies are able to compete within the space so that average consumer remains prioritized and protected.