Amazon in Talks to Buy Stake in AI Truck-Driving Startup Plus

Self-Driving Truck Technology

According to numerous news sources, Amazon.com Inc. is in talks to buy a stake in artificial intelligence truck-driving startup Plus and has placed an order for 1,000 autonomous driving systems.

Bloomberg reports, the deal would give Amazon the right to buy preferred shares of Plus via a warrant at a price of $0.46647 per share, the person said, asking not to be named because the matter is private.

That would amount to a 20% stake based on Plus’s shares outstanding before its planned merger with special purpose acquisition company Hennessy Capital Investment Corp. V. A company filing to the U.S. Securities and Exchange Commission confirmed Bloomberg’s report.

The Sequoia Capital China-backed company, which is developing autonomous driving technology for long-haul trucking, is set to have a valuation of $3.3 billion, adding $500 million in proceeds to accelerate its expansion, the company said in a statement in May. The company raised $150 million via so-called private investment in public equity, or PIPE, from funds including BlackRock Inc. and D.E. Shaw.

Cupertino, California-based Plus is among a handful of startups trying to up-end a fragmented long-haul trucking business with driverless technology. It has been working with Chinese delivery company SF Holding Co., which uses Plus-enabled trucks that can cover 1,500 kilometers (932 miles) a day, Plus said in April. State-owned China FAW Group Co. plans to start mass production of jointly-developed autonomous trucks this quarter, Plus has said.

About Plus

Plus was founded by a group of Stanford University classmates in 2016, Plus is backed by investors including Shanghai Automotive Industry Corp., GSR Ventures Management, and a Chinese long-haul company known in English as Full Truck Alliance. It also has a partnership with European truckmaker Iveco SpA and is working with Cummins Inc. on using autonomous technology in trucks powered by natural gas.

It began delivering its automated driving system PlusDrive to some customers in the U.S. and China this year.

The company recently hired Dennis Mooney from Navistar International Corp. and Chuck Joseph from Amazon.com Inc. to help scale up production and promote the adoption of Plus technology.

Plus's Mission

Plus’s mission is to make long-haul trucking safer, cheaper, more comfortable, and better for the environment.

“Trucking is the backbone of our country’s economy, society, and our personal lives, quietly moving goods we use and eat every day. We are applying automated driving technology to trucks today so that fleets and drivers can start benefiting from this revolutionary technology. Our automated driving system, PlusDrive, will improve the lives of truck drivers around the world while saving lives lost to heavy truck-related accidents and making our world greener through reduced carbon emissions.”

Amazon and Autonomous-Vehicle Transportation Technology

In June 2020, Amazon.com Inc agreed to pay over $1 billion to buy self-driving startup Zoox Inc, a move that will expand the e-commerce giant's reach in autonomous-vehicle transportation technology. Amazon continues its desire to reduce transportation costs by investing in autonomous vehicle technology.

Read: Is Amazon Within Striking Distance of UPS, FedEx, and USPS to Become a National Parcel Carrier?

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