If Trump vs. Amazon were a popularity contest, the latter would win hands down
U.S. President Donald Trump has resumed his Amazon-bashing in the news and on Twitter. This rivalry goes back to Mr. Trump’s bid for the Presidency, with Jeff Bezos’ Ecommerce giant being singled out for aggressive comments over sales tax and its use of the U.S. Postal Service. Bezos, for his part, was not a passive recipient of the attacks: his Washington Post ran a number of unflattering articles about the then-Republican nominee. But has Trump bitten off more than he can chew in regards to Amazon? New analysis by Quartz suggests he might have.
Amazon’s share price has risen by 23% so far this year
SOURCE: Yahoo Finance
According to Quartz, Amazon is “indisputably more popular than the U.S. President.” The publication cites the fact that “about 63 million Americans” voted for Mr. Trump in the last U.S. Presidential election. Meanwhile, the number of American households that subscribe to Amazon Prime (depending whose statistics you believe) is somewhere between 60 million and 90 million.
Taking the lowest possible number of households with a Prime subscription, and using the average number of members per household (2.64), suggests that there were 158.4 million people with access to a Prime subscription in 2017. Easily more than twice as many that voted for Mr. Trump. Of course, many of these people will not be of voting age – but these figures are also based on an absolute minimum number of Prime subscriptions in the U.S.
Add to this the fact that a Prime Membership costs $99 a year (assuming you don’t qualify for the company’s reduced rates), while Trump’s supporters were only required to “go out and cast a ballot”, and Quartz says that “the tech giant wins the popularity contest hands down.”
Of course, we shouldn’t read too much into this – President Trump is not beholden to consider how many people like Amazon when considering what to do next. But, if he’s looking for reelection in 2020, he might be wise to avoid the “truly massive challenge” to his popularity that a head-to-head would represent.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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