Author Topic: AMZN - Amazon.com Inc.  (Read 743764 times)

Liberty

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Re: AMZN - Amazon.com Inc.
« Reply #2530 on: August 12, 2020, 04:56:16 AM »
They still prioritize essential goods, I think, so yes, other things may still be slower in some places.


Liberty

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Re: AMZN - Amazon.com Inc.
« Reply #2531 on: August 17, 2020, 07:40:21 AM »
https://www.reuters.com/article/us-amazon-com-rackspace-tech-exclusive/exclusive-amazon-in-talks-to-invest-in-cloud-services-company-rackspace-say-sources-idUSKCN25D1Q6

Reuters: "Amazon in talks to invest in cloud services company Rackspace" ("The deal would involve Amazon acquiring a minority stake in Rackspace")


Saluki

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Re: AMZN - Amazon.com Inc.
« Reply #2533 on: August 27, 2020, 08:06:35 AM »
The grocery thing has always puzzled me.  Supermarkets make 2-4% margins in good locations and negative margins in bad locations.  Their AWS business is growing like a weed and very sticky for its customers (incredibly high switching costs), why get involved with a low margin business where you have crazy people yelling at your staff over wilted lettuce. 
If it's important, do it every day. If it's not important, don't do it at all.  -Dan Gable

glorysk87

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Re: AMZN - Amazon.com Inc.
« Reply #2534 on: August 27, 2020, 10:38:08 AM »
The grocery thing has always puzzled me.  Supermarkets make 2-4% margins in good locations and negative margins in bad locations.  Their AWS business is growing like a weed and very sticky for its customers (incredibly high switching costs), why get involved with a low margin business where you have crazy people yelling at your staff over wilted lettuce.

I don't work on AMZN's strategy team so this is speculation but I'd assume:

A) They think they can operate the business and higher-than-normal margins
B) It helps act as a customer acquisition tool for Prime subscriptions
C) It lowers Prime churn

Which one can safely assume should increase the average LTV of Prime subscribers by a decent amount.

rkbabang

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Re: AMZN - Amazon.com Inc.
« Reply #2535 on: August 27, 2020, 10:44:40 AM »
The grocery thing has always puzzled me.  Supermarkets make 2-4% margins in good locations and negative margins in bad locations.  Their AWS business is growing like a weed and very sticky for its customers (incredibly high switching costs), why get involved with a low margin business where you have crazy people yelling at your staff over wilted lettuce.

I don't work on AMZN's strategy team so this is speculation but I'd assume:

A) They think they can operate the business and higher-than-normal margins
B) It helps act as a customer acquisition tool for Prime subscriptions
C) It lowers Prime churn

Which one can safely assume should increase the average LTV of Prime subscribers by a decent amount.

If A is not true and they run it at break-even. B & C make it worth the investment.


Liberty

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Re: AMZN - Amazon.com Inc.
« Reply #2537 on: August 28, 2020, 11:20:44 AM »
They probably think they can reduce labor costs with Go style automation, and it's not the margins that matter, it's the ROIC. If you can get lots of turns of inventory and huge revenues out of it, it can move the needle. It's a large enough market to matter to a company of Amazon's size.

Liberty

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Re: AMZN - Amazon.com Inc.
« Reply #2538 on: August 31, 2020, 08:57:29 AM »
https://www.cnbc.com/2020/08/31/amazon-prime-now-drone-delivery-fleet-gets-faa-approval.html

Quote
Amazon on Monday received approval from the Federal Aviation Administration to operate its fleet of Prime Air delivery drones.

Amazon joins UPS and Alphabet-owned Wing, who previously won FAA approval for their drone delivery operations.

fareastwarriors

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Re: AMZN - Amazon.com Inc.
« Reply #2539 on: September 09, 2020, 11:14:11 AM »
https://www.cnbc.com/2020/09/09/amazon-is-on-a-hiring-spree-amid-widespread-coronavirus-layoffs-and-record-unemployment.html

Amazon said Wednesday it would hire 33,000 corporate and technology workers across the U.S. in the coming months.

Amazon has already grown its global headcount 34% so far this year.

...

An Amazon spokesperson said the corporate and technology jobs will be located across the country, not just in major cities.