Lang Aftermarket iReport: Amazon aims at mobility domination

“Amazon’s recent acquisition of the auto-tech startup Zoox has expanded its footprint in three key sectors of the fast-changing multi-trillion-dollar consumer mobility market: autonomous vehicles (AV), electric vehicles (EV), and ride-hailing.

“Amazon’s continued growth in the automotive parts repair industry is positioning it as the go-to source for consumers’ vehicle maintenance. With its $1 billion purchase of Zoox, Amazon has become a leading force in the rapidly evolving consumer mobility market, no matter what direction it takes.”

— Jim Lang, publisher, Lang Aftermarket iReport

Mobility as a Target

Mobility has become a major target in Amazon’s overall goal of being the “everything store” for consumers, reaching far beyond everyday consumer products. Few areas of future consumer spending will be greater in size than the multi-trillion-dollar mobility market, which will undergo dramatic changes during the next several decades.

Zoox is developing an electric autonomous vehicle, which Amazon has stated will help it achieve its ride-hailing goal as well as other mobility objectives.

Three Areas of Mobility Change

Mobility in the U.S. is undergoing three major types of change that could dramatically transform the nature of consumer mobility over the next several decades.

Amazon’s acquisition of Zoox, along with recent investments in other mobility companies (e.g., Rivian and Aurora Innovation) are transforming Amazon into a leader in the evolving consumer mobility market.

Autonomous Vehicles

Autonomous (driverless) vehicles (AV) remain a hot subject and area of great investment among car and tech companies. While there are indications that level 5 vehicle autonomy (driving in all conditions without human assistance) may be some decades away, progressively higher levels of vehicle autonomy will become common on U.S. roads in coming years.

Electric Vehicles

Electric vehicles (EV) have secured so far only a small portion of new vehicle sales in the U.S. However, some analysts believe that the explosion of new EV models entering the U.S. market over the next few years will create a surge in EV sales. While this remains to be seen, Amazon’s acquisition of Zoox positions it as a leader in EV and AV technologies and even, potentially, as an autonomous EV maker.

Ride-Hailing

Amazon’s acquisition of Zoox expands its ability to develop a ride-hailing capability, something that it has presented as one of its major transportation goals.

Ride-hailing is a cornerstone of the “transportation as a service” model (TaaS) that some analysts believe will largely replace car ownership in the future.

Automotive Parts and Repair as Stepping-Stones

As it develops long-range autonomous vehicle capabilities, Amazon can concentrate on the present mobility needs of Americans by expanding its footprint in the automotive parts and repair market. Auto parts and repair are a natural bridge that will enable Amazon to reach its longer mobility goals of vehicle autonomy, electric vehicles, and ride-hailing.

Goal of Mobility Giant

Amazon has demonstrated its intention to become a leader in the fast-changing consumer mobility market. With its billions of investments in automotive technology and vehicle manufacturing, Amazon is preparing to leverage its unrivaled position with consumers into becoming the provider of their future multi-trillion-dollar mobility needs.

Six Major Takeaways

• Amazon has targeted mobility as a key part of its long-term strategy to become the supplier of virtually everything that consumers need.
• Amazon’s acquisition of Zoox expands its consumer mobility position in three key areas: autonomous driving, electric vehicles, and ride-hailing.
•  Zoox is the most recent and one of the largest acquisitions by Amazon in the mobility field. Amazon has also made large investments in Rivian (electric trucks) and Aurora Innovation (driverless technology) in the past few months.
•  Ride-hailing, a cornerstone of the “transportation as a service” model (TaaS) that some analysts believe will largely replace vehicle ownership in the future, is now in Amazon’s wheelhouse as a result of its Zoox acquisition.
•   Amazon’s aftermarket activities are positioning it to become the choice of consumers for their future transportation needs, whatever shape these might take.
•   Amazon is leveraging its dominant position among consumers with expanded vehicle technology and manufacturing capabilities to become a leader in the rapidly evolving multi-trillion-dollar consumer mobility market of the future.

Copyright 2020 by Lang Marketing Resources, Inc.

NOTE: Special thanks to publisher Jim Lang for granting us permission to publish the Lang Aftermarket iReport.