Amazon Buying Zoox May Save $20 Billion, Put Tesla on Its Heels

May 27, 2020, 1:43 PM

Amazon.com Inc.’s talks to buy driverless vehicle startup Zoox Inc. has analysts speculating the deal could save the e-commerce giant tens of billions a year and put auto, parcel and ride-hailing companies on their heels.

Shipping costs are one of Amazon’s largest expenses and may reach $90 billion in the coming years, Morgan Stanley’s internet, auto and transport analysts wrote in a report Wednesday. An autonomous offering could save the company more than $20 billion annually, they estimate.

A Zoox car on a test drive in San Francisco.
Photo: Andrej Sokolow/dpa via Getty Images

“Autonomous technology is a natural extension of Amazon’s efforts to build its own third party logistics network,” Morgan Stanley’s analysts ...

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