Amazon is reportedly buying 1,000 autonomous truck-driving systems, which could pave the way for one day ditching drivers
Plus
- Amazon reportedly ordered 1,000 autonomous truck-driving systems from a startup called Plus.
- The retail giant also has the option to buy shares of the AI startup, according to a recent filing.
- The technology falls in line with Amazon's focus on AI-related technology.
- See more stories on Insider's business page.
Amazon has agreed to buy 1,000 autonomous truck-driving systems from a self-driving trucking startup, Bloomberg first reported.
The self-driving trucking startup, Plus, makes AI-based software for trucks, and has also reached an agreement with Amazon to offer the ecommerce giant the opportunity to purchase shares, according to a Monday filing.
As part of the agreement, Amazon has the option to purchase up to 420,702,410 preferred shares of Plus at about $0.47 each, which would represent a 20% stake in the company. If Amazon were to purchase the maximum available shares offered, it would represent an investment of nearly $200 million.
An Amazon spokesperson declined to comment on Bloomberg's report beyond pointing Insider to the financial filing. A Plus spokesperson also declined to comment.
Plus, based in California, is one of many companies that is working to create driverless systems. The Amazon partnership could eventually help Amazon remove the need for human drivers. This is just the latest example of the retail giant exploring what a future that does not rely on human delivery drivers could look like. This time last year, Amazon agreed to buy Zoox, self-driving taxi for over $1 billion. Amazon's autonomous robotaxi was unveiled later that year.
By using Plus' technology, Amazon could also eventually help overcome a national labor shortage that has heavily impacted the trucking industry, forcing delivery delays and rising transportation costs. For now, the system - PlusDrive - still requires a licensed driver.
But that could change in coming years. PlusDrive is Plus' first product and it operates similarly to Tesla's "full self-driving" software, which requires a licensed driver to keep their eyes on the road in case the system malfunctions or needs intervention. Plus CEO David Liu told Insider's Mark Matousek the company hopes to sell a product that does not require a driver by the end of 2024.
Plus started delivering automated-driving systems for semi-trucks earlier this year to companies in US and China. The company has provided Chinese delivery company SF Holding with its system which allows semi-trucks to drive over 900 miles per day.
Plus was founded in 2016 and announced plans to go public via a $3.3 billion SPAC deal in May.
It will not be Amazon's first foray into automated technology. Amazon has long used AI-related technology to monitor employees and maximize productivity. The company has used AI as anything from a tool to hire talent to a system that tracks delivery drivers' movements and can even sense when a driver yawns.