We’re approaching a world where you could live on Amazon alone
The soon-to-be world’s most eligible bachelor, Amazon founder Jeff Bezos, has never made a secret of his plans to turn Amazon into an ‘everything shop’. Many people would say it’s nearly there. And, if the company’s forays into new territory over the next decade go as planned, Amazon may well soon be in a position where consumers could spend all week – and we mean this quite literally – solely in contact with it.
Amazon’s share price has increased by 11% already this year
Source: Yahoo Finance
Think about: Amazon Basic stocks your everyday items – the bed you sleep on, clothing, toilet paper, batteries, etc. You want food? Well, Amazon owns Whole Foods. Entertainment? Sure – Amazon has an industry-leading streaming video on demand platform, as well as a music streaming platform and a video game service (Twitch). If you’re studying, Amazon has the text books. If your home is connected, Amazon’s Alexa can operate it for you.
Is there anything the company can’t do? There are a couple of sectors that have, thus far, remained safe from Mr. Bezos’s giant. But they might not remain that way. Amazon acquired the US’s largest online pharmacy in 2018, and the potential for the company to branch out into healthcare by disrupting that space is oft-discussed. There have also been questions raised about the possibility of Amazon becoming a player in the finance business – though, as yet, there’s nothing but rumours to report.
In a world where all of these industries are within Amazon’s reach, a world where the company masters same-day-delivery, conquers the brick-and-mortar retail world (through Amazon Go and Whole Foods), and continues to add valuable subscribers to its Amazon Prime ecosystem… well, the sky’s the limit (and Amazon already owns the cloud).
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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