Digital Gabe
Cutting Edge Commentary On All Things Media

Is Amazon Getting Too Big?

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There’s growing school of thought amongst economists and politicians alike that Amazon may be getting too big for its own good.  For some context consider the sprawling scale and amazing depth the company already has within the US:

  • According to Kantar Research almost 50% of US households have an Amazon Prime account, with half of those account holders buying something weekly on the platform
  • Amazon has the ability to ship over 10M items daily with one-day shipping courtesy of their self-owned delivery fleet
  • AWS (Amazon Web Services) is fast becoming the global leader in Cloud Computing
  • Amazon already owns Whole Foods, is opening 1,000+ Amazon Go cashierless stores, and has a new concept grocery store in the development stage
  • Ad Sales on Amazon’s platform are expected to top $11B in 2019
  • By the end of 2019 Amazon will have an always-on microphone in 1 out of 10 US households (thanks to their Echo smartspeaker devices)
  • Amazon has its own Oscar-winning studio which produces original TV shows and movies
  • In collaboration with Berkshire Hathaway and JP Morgan Chase, Amazon is developing a proprietary healthcare system for their employees
  • Amazon is working on a satellite network which would provide internet access to every single person on planet Earth

This is an amazing (and even scary) list to think about.  It’s makes you wonder two things.  First, can Amazon or any company possibly do all of this well?  The law of customer service says the bigger you get the harder it is to maintain quality – and you can’t get much bigger than Amazon is right now.  The other thing to consider is if any company should even be this big.  Over the past week there have been calls for the breakup of Facebook, which seems like small potatoes compared to the empire Jeff Bezos is building.  Don’t be surprised to hear the Amazon breakup drumbeat grow louder over the next few years.

 

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