Question: Read the text below from a recent Financial Times article about Amazon's potential interest in acquiring the company Zoox. Conduct a PEAS analysis (you can

Read the text below from a recent Financial Times article about Amazon's potential interest in acquiring the company Zoox. Conduct a PEAS analysis (you can choose whether to take the Amazon or Zoox perspective in your analysis). Submit your answer using the text entry box. Amazon/driverless cars: Ecommerce company reportedly interested in autonomous vehicle start-up Financial Times, May 27 2020 Amazons unruly list of businesses is on the verge of gaining a driverless addition. The trillion dollar ecommerce companys reported interest in autonomous vehicle start-up Zoox seems an unusually capital intensive move for such a frugal company. It is the sort of deal likely to set antitrust senses tingling too. But the possibility of autonomous deliveries could power Amazons bid for logistical self-sufficiency. Cutting the cost of deliveries is crucial to Amazons plans. Luring customers with one day deliveries is proving expensive. Shipping and fulfilment costs grew 49 per cent in the last quarter - admittedly swollen by additional costs occasioned by coronavirus - compared with the previous year. These are growing at a much quicker pace than ecommerce sales, which rose 25 per cent over the same period. Chinese tech companies like JD.com have already begun to automate deliveries. But success requires heavy investment. Last valued at $3.2bn in 2018, according to PitchBook, Zoox would be Amazons second largest acquisition after its $13.7bn purchase of supermarket Whole Foods in 2017. The cash is available. Free cash flow minus equipment finance leases was almost $12.5bn last year. Operating cash flow has been growing as a percentage of sales too up from 11 per cent in 2015 to almost 14 per cent in 2019. A stupefying share price rally has more than doubled Amazons market value since it bought Whole Foods. At $3bn Zoox would equal less than 0.3 per cent of Amazons market capitalisation. The price tag is likely to be lower given Zoox appears to be running out of road. Co-founders Tim Kentley-Klay and Jesse Levinson created the company in 2014 to build the driverless car trifecta: a driverless software system, electric cars and a ride-hailing network. With almost $1bn already raised, Zoox is the best funded start-up in the area. But it has less experience and less money than Alphabets Waymo which is estimated to be spending $1bn per year. Vast costs plus an undisclosed settlement with Tesla has left Zoox in need of more funds. It has already cut employees. Amazon is unlikely to be interested in driverless ride-sharing but even if it focuses attention on the vehicles and driverless system the cost of development means its outlay will far exceed Zooxs price tag. Driverless car hype has undergone a reality check as the scale of capital required continues to grow and regulators remain spooked by accidents. What the sector needs is deep pockets and patience. Luckily Amazon founder Jeff Bezos is known for both.

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