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Tag: Amazon

  • Apple Hits $2.5 Trillion Market Capitalization

    Apple Hits $2.5 Trillion Market Capitalization

    Apple hit another major milestone, becoming the first US company to cross the $2.5 trillion valuation.

    Apple is in an elite club of companies worth more than $1 trillion. The iPhone maker is now the first US company to cross $2.5 trillion, following a two-day stock rally. The company crossed the milestone in intraday trading Wednesday, according to AppleInsider.

    There are currently only two US companies worth $2 trillion or more: Apple and Microsoft. The only other company in the world to cross the $2 trillion mark is Saudi Aramco. Amazon is widely anticipated to be the likely third US company to cross the threshold in the coming months.

    With today’s milestone, Apple is well on its way to becoming the first $3 trillion company.

  • Amazon Increases Efforts to Take on SpaceX, Acquires Facebook Satellite Internet Team

    Amazon Increases Efforts to Take on SpaceX, Acquires Facebook Satellite Internet Team

    Amazon is doubling down on its efforts to take on SpaceX in the battle for satellite internet, acquiring Facebook’s team to assist it.

    SpaceX is the undisputed leader in providing low-Earth orbit satellite internet. Unlike traditional satellite internet, SpaceX’s Starlink service offers speeds comparable with terrestrial broadband.

    Amazon has been working on its own service, but still lags far behind SpaceX. According to The Information, via Business Insider, Amazon is working to change that and has acquired Facebook’s team of more than a dozen strong. While Facebook had initially planned on launching its own service, the company told Insider it now plans to work with partner companies instead.

    Amazon also acquired some intellectual property as part of the deal, along with facilities and equipment. It remains to be seen if the addition will help Amazon catch up to SpaceX.

  • Jeff Bezos Officially Steps Down as Amazon CEO

    Jeff Bezos Officially Steps Down as Amazon CEO

    Jeff Bezos has officially stepped down as Amazon CEO, on the 27th anniversary of the founding of his company.

    Bezos surprised the world when he announced in February 2020 that he would be stepping down from the company he founded and turned into an e-commerce and cloud behemoth. It’s believed he wants to spend more time on his Blue Origin company, one of the main competitors to Elon Musk’s SpaceX.

    Monday, Bezos and Amazon made the move official. Andy Jassy, the head of AWS, succeeds him. Jassy’s promotion to the top job shows the importance of Amazon’s cloud business moving forward.

    In the meantime, despite not being CEO, Bezos will remain a powerful voice in the company. He continues to be its biggest shareholder, with a stake that’s currently worth some $180 billion.

  • Amazon Launches Amazon Scout Development Center in Helsinki

    Amazon Launches Amazon Scout Development Center in Helsinki

    Amazon is launching a development center in Helsinki, Finland, in an effort to boost its autonomous delivery.

    Amazon Scout is the company’s autonomous delivery robot. The size of a small cooler, the robot traverses sidewalks, delivering packages in four US locations. Like many companies, Amazon is looking to expand this further and widen Scout’s usage.

    The company is launching a new development center aimed at supporting Scout and continuing its research and development. The new team will initially consist of two dozen engineers, although Amazon says the team will grow over time.

  • Shopify Announces 0% Revenue Sharing on First $1 Million in Sales

    Shopify Announces 0% Revenue Sharing on First $1 Million in Sales

    Shopify is dropping its revenue cut for developers that earn less than $1 million annually, in a move that rivals other tech platforms.

    Shopify is one of the most popular e-commerce platforms, powering some $120 billion in Gross Merchandise Volume (GMV) in 2020. Until now, the company took a 20% revenue commission, but the company is waiving that for smaller developers.

    Developers who build for the Shopify App Store will now pay 0% revenue share for the first $1M they earn annually on the platform starting on August 1. That’s down from 20%. The $1M benchmark resets annually.

    The same 0% revenue share model will also be available to Theme Store developers. 

    The announcement follows similar moves by Google, Apple and Amazon as app ecosystems are increasingly under scrutiny by regulators. Whatever the motivation, the move will certainly help small developers.

  • Teamsters Vote to Prioritize Unionizing Amazon Workers

    Teamsters Vote to Prioritize Unionizing Amazon Workers

    The International Brotherhood of Teamsters has voted to create a division specifically tasked with assisting Amazon workers.

    Amazon has been the target of increased unionization efforts, efforts which the company has pulled out all the stops to combat. The Teamsters already represent 1.4 million delivery drivers and have been vocal opponents of Amazon’s anti-union tactics.

    The union voted Thursday to create a special division to help workers in Amazon’s logistics businesses, including delivery drivers and warehouse workers. “Special Resolution: Building Worker Power at Amazon” passed with overwhelming support, with 1,562 votes in favor and only nine opposed, according to NBC News.

    “Amazon presents a massive threat to working-class communities and good jobs in the logistics industry,” Randy Korgan, the Teamsters National Director for Amazon, said. “Amazon workers face dehumanizing, unsafe and low-pay jobs, with high turnover and no voice at work.”

    “Amazon workers are calling for safer and better working conditions and with today’s resolution we are activating the full force of our union to support them,” Korgan added.

    Only time will tell if the Teamsters’ efforts will be successful, but the timing is sure to put additional pressure on Amazon as it faces increased regulatory scrutiny.

  • Amazon and Google Under Scrutiny in Britain Over Fake Reviews

    Amazon and Google Under Scrutiny in Britain Over Fake Reviews

    Britain’s Competition and Market Authority is investigating whether Amazon and Google are doing enough to combat fake reviews.

    Fake reviews have become an increasing problem for online platforms and shoppers alike. As online shopping has displaced brick and mortar stores, users rely on reviews more than ever. Not surprisingly, an entire industry has grown up around providing fake reviews to dupe customers into purchasing products they otherwise may not have.

    The Competition and Market Authority is investing Amazon and Google to see if they’re doing enough to protect customers by combatting fake reviews, according to The Washington Post.

    Both companies have said they will continue to work with the CMA and its inquiries.

  • Teamsters May Set Their Sights on Amazon

    Teamsters May Set Their Sights on Amazon

    The International Brotherhood of Teamsters may take on Amazon at a time when the company is aggressively combating unionization efforts.

    The Teamsters are the most well-known union in the US, with a long and storied history. The group also boasts some 1.4 million delivery drivers, putting it on a collision course with Amazon.

    Amazon has drawn significant criticism in recent years for its treatment of its workers, including delivery drivers. As recently as February, the company settled with the FTC for some $62 million dollars over its practice of illegally withholding tips from its drivers.

    The company has aggressively fought unionization efforts by its employees, however, successfully defeating an effort by warehouse workers in Alabama. The Teamsters have already come out swinging against the e-commerce giant, urging the House Judiciary to pass antitrust legislation that would target Amazon.

    On Thursday, the union will vote on whether to make unionizing Amazon drivers its top priority, according to The Seattle Times.

    “There is no clearer example of how America is failing the working class than Amazon,” says the resolution that will be voted on.

  • Amazon Touts Best Two-Day Prime Day Sales Period for Third-Parties

    Amazon Touts Best Two-Day Prime Day Sales Period for Third-Parties

    Amazon is touting its most recent Prime Day as the “two biggest days ever for small & medium-sized businesses.”

    Prime Day is the company’s answer to Black Friday, a sales event where prices are slashed and deals abound. The company says this year’s Prime Day was the best two-day period for its third-party sellers.

    The company says customers spend more than $1.9 billion on some 70 million small business products, representing more than a 100% increase from the previous year.

    “A huge thank you to all of the Amazon teams who made this Prime Day possible for members worldwide and to Prime members who supported small businesses in big ways,” said Dave Clark, CEO of Worldwide Consumer. “Prime members are an important part of our Amazon family, and we love to celebrate them during Prime Day with incredible deals and entertainment, including this year’s Prime Day Show.”

    Some of the most popular categories were tools, electronics, beauty, nutrition, baby care, household products and apparel.

  • FTC Scrutinizing Amazon’s MGM Acquisition

    FTC Scrutinizing Amazon’s MGM Acquisition

    The Federal Trade Commission is planning to review Amazon’s acquisition of MGM at a time when Big Tech is facing increased scrutiny.

    Amazon announced in May it was purchasing MGM for $8.45 billion. MGM had reportedly been looking for a buyer for some time, and Amazon was a natural fit as it looks to expand its Prime Video content catalog.

    According to The Wall Street Journal, the FTC is planning on reviewing the decision, amid antitrust concerns and a wider scrutiny of the increasing power and influence the tech industry wields. The decision also comes immediately after the appointment of Lina Khan as FTC Chairwoman. Khan made a name as an antitrust critic, in large part for her criticism of Amazon.

    MGM is no longer one of the larger Hollywood studios, so that is certainly in the Amazon’s favor. Nonetheless, given the power Amazon already wields — not to mention the success of its Prime Video platform — buying MGM may be a bridge too far for regulators.

  • Microsoft Joins Exclusive $2 Trillion Club

    Microsoft Joins Exclusive $2 Trillion Club

    Microsoft has become just the third company in the world to cross $2 trillion valuation.

    Only a few companies have crossed the $1 trillion threshold, including PetroChina, Apple, Amazon, Microsoft, Saudi Aramco and Alphabet. Of those companies, only Saudi Aramco and Apple had previously crossed $2 trillion.

    Microsoft now joins the $2 trillion dollar club, becoming only the third company to do so. Much of the company’s success is as a result of Satya Nadella’s leadership. Under Nadella, Microsoft has shifted its focus to the cloud, becoming the second-largest cloud platform.

    Nadella has also lead Microsoft toward becoming a better team player in the larger tech industry. The company was once known for brutal competitiveness, squashing threats with a vengeance and using its dominance on the desktop to do so. Such behavior landed the company in hot water with the government, leading to the landmark antitrust trial of the early 2000s.

    In recent times, the company has stopped focusing so much on protecting its own desktop OS and, instead, has pivoted to making its software and services available on a wide array of platforms. The company has also embraced open source software, and is a major contributor to a number of important projects.

    All of this has lead the company to new heights, while also helping it avoid much of the antitrust scrutiny its rivals are currently under. If there was any doubt about the direction Nadella has led the company, crossing this most recent threshold is a major validation of his leadership.

  • Walmart Gearing Up for Nationwide Drone Delivery

    Walmart Gearing Up for Nationwide Drone Delivery

    Walmart is gearing up for nationwide drone delivery, following a successful pilot program that showcased the possibilities.

    Drone deliveries are seen as one of the next major steps for retail, with Amazon, Walmart and others exploring the technology. Last year, Walmart partnered with DroneUp to test the viability of drone deliveries, and the results were promising. In fact, the company discovered it could cut delivery time from hours to mere minutes.

    In view of the success of the pilot program, Walmart is doubling down on drone deliveries with an investment in DroneUp.

    Now, after safely completing hundreds of drone deliveries from Walmart stores, we’re making an investment in DroneUp to continue our work toward developing a scalable last-mile delivery solution.

    The company is touting its infrastructure, thanks to its thousands of stores around the US, as a major asset to successful drone operations.

    Walmart already has a significant part of the infrastructure in place – 4,700 stores stocked with more than 100,000 of the most-purchased items, located within 10 miles of 90% of the U.S. population. This makes us uniquely positioned to execute drone deliveries, which is why our investment in DroneUp won’t just apply to the skies but also the ground. In the coming months we’ll be beginning our first operation at a store in Bentonville, Arkansas.

    Walmart has been looking for ways to take on Amazon, and drones that deliver products in minutes is a big step in that direction.

  • A Single Customer Was Responsible for Fastly’s Outage

    A Single Customer Was Responsible for Fastly’s Outage

    Fastly has said a single customer caused yesterday’s outage, an outage that had widespread repercussions.

    Fastly made headlines yesterday when an issue with the company’s network led to a major outage. As a content delivery network, some of the biggest companies in the world rely on Fastly, including Amazon, the BBC, CNN, Financial Times, The New York Times, Reddit, Spotify, GitHub, Twitch, Stack Overflow, Hulu, HBO Max, Quora, PayPal, Shopify, Stripe and Vimeo.

    According to TheStreet, the company rolled out a software update in May that introduced a bug that could be triggered under very specific circumstances. The bug only needed a single customer to have a very specific configuration for the bug to active, which ultimately happened.

    “Even though there were specific conditions that triggered this outage, we should have anticipated it,” the company said. “We apologize to our customers and those who rely on them for the outage and sincerely thank the community for its support.”

  • Amazon Calls for Revitalizing the USPS

    Amazon Calls for Revitalizing the USPS

    Amazon is throwing its weight behind efforts to revitalize the United States Postal Service, calling it the company’s “first and oldest business partner.”

    The USPS has been facing increasingly difficult times as a result of the digital transformation. With people relying more on electronic communications than letters, USPS revenue has dropped precipitously. The outlook is even worse, with the USPS estimating it will lose $160 billion over the next 10 years.

    The Postal Service Reform Act is bipartisan legislation that has been introduced in an effort to help the USPS transition to a more sustainable future.

    We’re proud of our partnership with USPS and want to continue working with the agency to innovate and deliver for our customers well into the future. With the House Oversight Committee’s swift advancement of the Postal Service Reform Act, we hope the full U.S. House and Senate will follow suit. Enacting these common-sense reforms will help guarantee that the USPS remains an affordable, reliable, and profitable package delivery system for the American people.

    It remains to be seen what will happen with the the Postal Service Reform Act, but Amazon has made it clear where it stands.

  • Amazon, Microsoft and Google Bidding on $1 Billion Boeing Cloud Contract

    Amazon, Microsoft and Google Bidding on $1 Billion Boeing Cloud Contract

    The Big Three in the cloud industry are bidding on a contract for Boeing, valued at $1 billion.

    Amazon, Microsoft and Google are the top three cloud providers and routinely try to outbid each other for major contracts. According to The Information, their latest point of competition is a multi-year cloud contract for Boeing.

    The contract has special significance for Amazon and Microsoft since both companies are based in the Seattle area, like Boeing itself. Winning the contract would give either company a big local win, and allow them to represent another local icon.

    The deal is thought to be worth at least $1 billion over the next several years.

  • Amazon Workers Petition Company to Address Its Pollution in Communities of Color

    Amazon Workers Petition Company to Address Its Pollution in Communities of Color

    Over 600 Amazon workers have signed a petition asking Amazon to do more to address warehouse pollution in communities of color.

    Recent research has shown that communities of color are disproportionately impacted by airborne pollution. Amazon Employees for Climate Justice (AECJ) accuse Amazon of being complicit in that disparity.

    Amazon’s operations are complicit in environmental racism. Amazon’s logistics network of trucks spew climate-change-causing greenhouse gases and toxic particles as they drive to and from warehouses that are concentrated near Black, Latinx, and Indigenous communities. Public warehouse facility location data from MWPVL International indicates 80% of Amazon’s non-corporate facilities are located in zip codes that have a higher percentage of people of color than the majority of populated zip codes in their metropolitan area.

    The AECJ has created a petition in an effort to force Amazon to address the issue.

    As employees, we are alarmed that Amazon’s pollution is disproportionately concentrated in communities of color. Amazon must commit to zero emissions by 2030 and deploy zero emissions technologies in communities most impacted by its pollution first. We want to be proud of where we work. A company that lives up to its statements about racial equity and closes the racial equity gaps in its operations is a critical part of that.

    Amazon has yet to respond to the petition.

  • D.C. AG Launches Antitrust Suit Against Amazon

    D.C. AG Launches Antitrust Suit Against Amazon

     

    Washington, D.C. Attorney General Karl A. Racine has filed an antitrust lawsuit against Amazon for anticompetitive practices and price-fixing.

    Amazon has increasingly been under fire on all fronts. The company has repeatedly been criticized for how it treats employees, as well as its attempts to combat unionization efforts.

    Now the company is under fire for alleged anticompetitive behavior, including wide-scale price-fixing. At the heart of the case is the company’s “most favored nation” (MFN) agreements, which prohibit retailers from offering their products elsewhere at cheaper prices, or with better terms, than they do on Amazon. The MFN agreements even prohibit retailers from offering their products cheaper on their own websites.

    “Amazon has used its dominant position in the online retail market to win at all costs. It maximizes its profits at the expense of third-party sellers and consumers while harming competition, stifling innovation, and illegally tilting the playing field in its favor,” said AG Racine. “We filed this antitrust lawsuit to put an end to Amazon’s illegal control of prices across the online retail market. We need a fair online marketplace that expands options available to District residents and promotes competition, innovation, and choice.”

    According to the AG, Amazon claimed to have removed its price parity policy in 2019. In actuality, the company is accused of quickly and quietly replacing it with a replacement policy that accomplished the same thing. Under the new policy, the Fair Pricing Policy, “third-party sellers can be sanctioned or removed from Amazon altogether if they offer their products for lower prices or under better terms on a competing online platform.”

    https://assets.documentcloud.org/documents/20788384/amazon-complaint-.pdf

  • Oracle Offering Arm-Based Cloud Computing

    Oracle Offering Arm-Based Cloud Computing

    Oracle has announced it is offering Arm-based cloud computing, using processors from Ampere Computing.

    Arm Holdings designs semiconductors and licenses those designs to other companies. The processors offer a combination of power and efficiency that make them ideally suited for use in compact spaces, making them the preferred chips for smartphones and tablets. Those same qualities also make them ideal for data center operations, where cooling and power requirements are at a premium.

    Oracle now joins Amazon as one of the companies offering Arm-based cloud computing services, powered by Ampere A1 Compute chips. Oracle is touting its cost, a mere one cent per core hour, as the industry’s lowest cost per core.

    “We see increasing demand for server-side Arm computing and adding Arm-based compute instances to our extensive portfolio of offerings enables customers to pick and choose the right processors for their workloads,” said Clay Magouyrk, executive vice president, Oracle Cloud Infrastructure. “Now customers who need an Arm platform for development can get the flexibility, scalability, and price-performance they need. We’re also making it really easy for developers to move their apps and develop new ones on Oracle Cloud Infrastructure.”

    “Ampere instances on OCI is a breakthrough for developers. Oracle’s Free Tier is a great offering that allows them to test the OCI Ampere A1 compute platform and experience the first-cloud native processor that delivers predictable performance, scalability and power needed,” said Renee James, founder, chairman and CEO, Ampere Computing. “The Oracle Cloud has all the tools developers need to try new technology, get excited about new platforms and develop new applications.”

    Arm semiconductor adoption in the data center is another increasingly worrying sign for Intel. While Arm has dominated the mobile market, Intel was the king of traditional computers and the data center. Last year, however, Apple announced it was switching its Mac platform to its own custom silicon, based on Arm designs. Microsoft has started following suit, pushing Windows on Arm.

    With Amazon and Oracle both supporting Arm-based cloud computing, Intel’s last stronghold is now under full assault.

  • Reports: Amazon Deal To Buy MGM Studios For $9 Billion Nearly Done

    Reports: Amazon Deal To Buy MGM Studios For $9 Billion Nearly Done

    According to numerous reports Amazon is very close to a deal to buy MGM Studios and its film library for nearly $9 billion with debt. This would significantly alter the streaming wars and give Amazon a huge base of over 4,000 titles, 17,000 hours of TV as well as the Epix pay-TV network. An agreement is expected this week unless their is a last-minute hitch.

    Some on Twitter have concerns about Amazon’s growing power. Journalist Dan Primack says that a top Amazon exec told him: “We’ll keep doing big deals until one actually gets blocked, instead of just political rhetoric.”

    Another person tweeted: Now that Amazon is buying MGM Studios they’ll be in charge of the entire food supply with Whole Foods, media consumption and propaganda at the Washington Post, and now all Hollywood misinformation. What could possibly go WRONG??? Monopolies in America are Evil.

    https://twitter.com/amtvmedia/status/1396917641281818625

    The deal potential was originally reported by The Information last Monday. Numerous additional news reports were posted in the last hour:

    The talks between Amazon and MGM have been on-again, off-again since the start of this year, people close to both companies said. Amazon and MGM have been in exclusive talks in recent weeks, the people said. The MGM board was briefed on the matter Sunday night, a person close to the situation said. There are no guarantees they will ultimately reach an agreement. An acquisition of one the most iconic entertainment brands in the world would be the most aggressive foray yet by a tech giant into Hollywood.

    Wall Street Journal

    Chatter that Amazon and other tech and media giants have been sniffing around MGM has circulated for some time. But sources indicated that Amazon’s interest in acquiring the studio has taken on a new tenor beyond the usual rumor mill. The deal is said to be being orchestrated by Mike Hopkins, senior VP of Amazon Studios and Prime Video, directly with MGM board chairman Kevin Ulrich, whose Anchorage Capital is a major MGM shareholder.

    Variety

    In the wake of Monday’s news that Amazon is making a go at MGM, it’s been radio silence. As of Friday, we hear that both sides remain actively in talks and want to get the deal done soon, but the time frame remains undefined.

    Deadline

    Amazon.com Inc. is nearing a deal to buy the Hollywood studio MGM Holdings for almost $9 billion, said people familiar with the matter, a pact that would turn a film operation founded in the silent era into a streaming asset for the e-commerce giant.

    Fox Business
    Reports: Amazon Deal To Buy MGM Studios For $9 Billion Nearly Done
  • Amazon Unveils ‘WorkingWell’ Employee Wellness Program and App

    Amazon Unveils ‘WorkingWell’ Employee Wellness Program and App

    Amazon has unveiled its “WorkingWell” employee wellness program, aimed at improving health and reducing injuries.

    Amazon has come under fire repeatedly in recent months over its workplace conditions and how it treats its employees. The company has been accused of using Pinkerton detectives to monitor unionization efforts, has illegally fired workers who tried to improve working conditions, has stiffed drivers some $62 million in tips and generally been under pressure for how its treated its employees.

    Understandably, the company is eager to rehabilitate its image, and has introduced its WorkingWell program.

    The health and safety of our employees has always been Amazon’s top priority. We work closely with health and safety experts and scientists. We conduct thousands of safety inspections each day in our buildings. And we’ve made hundreds of changes as a result of employee feedback on how we can improve their well-being at work.

    Our latest example is WorkingWell, a new program developed by some of Amazon’s 6,200 employees dedicated to global workplace health and safety. WorkingWell uses scientifically proven physical and mental activities, wellness exercises, and healthy eating habits to help recharge and reenergize the body, and ultimately reduce the risk of injury for operations employees.

    The company is also rolling out a WorkingWell app, a multi-faceted app that arms employees with the content and information they need to be healthy.

    “Having studied computer science, people may assume I’m more focused on the technology than on employees. But with the WorkingWell mobile app, that’s not the case,” said Chandni Chandihok, the workplace health and safety product manager leading the app’s development. “I developed this app with employees, for employees. I want to make sure it’s not only easy to use but that it’s beneficial, whether someone is starting their health and wellness journey or continuing their safety education. I care deeply about supporting employees, which is why this is so rewarding for me.”

    The app will be rolling out to all US employees soon.

  • Amazon Destroyed Millions of Counterfeit Products in 2020

    Amazon Destroyed Millions of Counterfeit Products in 2020

    Amazon has detailed its efforts to fight counterfeit products, including the destruction of more than 2 million counterfeits.

    Few companies have enjoyed as much success as Amazon during the pandemic. The company became a lifeline for many who were under lockdown and quarantine, and significantly expanded its workforce to keep up.

    A long-term problem Amazon has faced, however, has been companies and individuals trying to sell counterfeit goods on the site. As Amazon has become a force to be reckoned with in the retail market, it is also stepping up its efforts to combat counterfeit products and attract brands that have been reluctant to sell on the site.

    In its first Brand Protection Report, Amazon said fewer than 0.01% of products sold received a counterfeit complaint. That low number was, in part, the result of the company’s aggressive fight against the problem.

    We seized and destroyed more than 2 million products sent to our fulfillment centers and that we detected as counterfeit before being sent to a customer.

    The company also stepped up its efforts to prevent bad actors from even gaining a foothold in the store.

    Our verification processes stopped over 6 million attempts to create a selling account before they were able to publish a single listing for sale. This is a significant increase from the 2.5 million attempts we stopped in 2019, and it was driven by increased bad actor attempts to get into our store that we successfully thwarted.

    Amazon’s transparency about its efforts may help sway companies and brands that have been reluctant to embrace the e-commerce giant.