E-commerce giant Amazon has announced acquisition of self-driving startup Zoox for a valuation of over $1 billion. The development is said to have happened so that Amazon can expand its reach into autonomous-vehicle technology. The exact purchase price of the deal has not been disclosed yet by the companies.

The majority of investors in Zoox are receiving their money back with some also making a profit out of it. Lux Capital, DFJ and Atlassian co-founder Michael Cannon-Brooks are a few investors in the firm.

Last month, it was reported by The Wall Street Journal that the companies have been in advanced discussions and this deal could have valued Zoox at less than the $3.2 billion it achieved in a funding round in 2018. Amazon has stepped up its investment in the car sector, participating in a $530 million funding round early last year in self-driving car startup Aurora Innovation Inc.

Zoox was founded in 2014 with the objective of to not only develop self-driving software, but to build its own vehicles and create a ride-hailing service. Amazon stated in a press release that Zoox will be operating in independent capacity with its existing leadership team. According to Amazon, “Zoox’s ground-up vehicle focuses on the ride-hailing customer, with tightly integrated features designed to provide a revolutionary passenger experience.”

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