Amazon's Acquisition of Self-driving Car Startup Zoox
| Case Code: BSTR622 Case Length: 12 Pages Period: 2015-2020 Pub Date: 2021 Teaching Note: Available |
Price: Rs.250 Organization: Amazon, Inc. Industry: e-commerce Countries: United States Themes: M&A, Diversification Strategy, |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
The case discusses the acquisition of Zoox by Amazon. The deal was expected to help Amazon consolidate its efforts at automating its distribution network, especially its last-mile delivery service. However, many common shareholders of Zoox were not happy with the deal. They went to court and filed a lawsuit against Zoox, alleging that the proceeds of its sale were dwarfed by the bonuses paid to Zoox’s executives by Amazon. The completion of the merger deal was crucial as it would ensure the commercial launch of Zoox’s ride-hailing service by the end of 2020. The launch had already been delayed due to the COVID-19 pandemic.
Issues
The case is structured to achieve the following teaching objectives:
- Understand the significance of mergers and acquisitions in the context of the autonomous mobility space.
- Explore the various motives behind the acquisition.
- Understand the different types of M&As and the rationale behind the acquisition of Zoox by Amazon.
- Understand the different types of synergies in M&As and what goes into ensuring the anticipated synergies are achieved
Contents
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Introduction
A Note on Amazon
A Note on Zoox
About the Deal
Challenges Ahead – Zoox Sued Over The Deal
Exhibits
Keywords
Amazon; Zoox; Integration Strategy; Expansion Strategy; Autonomous Mobility; Different Types of Merger; Integration Challenges; Shipping Costs; Robo Vehicle;Autonomous RoboticVehicle; Zero-Emission Vehicle; Minority Shareholders; Valuation
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