With the COVID-19 lockdown measures, it was inevitable that the industry leader in delivery services with its roots already established would seize this chance to grow. Amazon has finally achieved the trillion-dollar empire status. However, Amazon’s CEO, Jeff Bezos has been the target of a lot of controversies. After two major events last week, Amazon’s shares fell by 8%, Bezos having lost a whopping 10.6 billion from his net worth. Meanwhile, as people are digesting this information, Bezos is already taking the right steps to ensure that Amazon has a secure place as a market leader.
Amazon Is Leveraging Current Demands
Bezos has faced a lot of criticism about ethical employee treatment. The recent resignation of Amazon’s VP over claims of unethically laying off workers sparked more controversies that further led to the resulting loss in shares. On Wednesday, it was confirmed that an Amazon employee died after contracting Coronavirus on April 11. It looks like he’s rectifying just those issues, with the recent announcement of investing all of his $4 billion revenue into COVID-19 safety measures and benefits for employees and customers. This includes 150 process updates, from facemasks, disinfectant sprays for facilities, temperature checks and coronavirus testing to health benefits, raises, paid time off and global philanthropic initiatives worth millions. Similarly, a lot of measures have been taken to ensure customer safety, health and convenience. At face value, Amazon is barely making any profit.
But this has been a recurring pattern for years. The one strategy Bezos has always used to achieve this this status is to strategically put revenue back into lucrative opportunities. Seeing all the current effort into building credibility and trust, Jeff Bezos is surely investing in the future.
Amazon Is Investing In The Post-Covid-19 Future
COVID-19 is a historical blow to the world. The impact the virus has had is going to leave a big, gaping hole in the economy. Instead of pumping the world with resources it doesn’t need (cough-oil-cough), Bezos has invested in exactly what we’d want- a testing lab. Amazon already has its hands in the healthcare industry, like Pillpack, and Amazon Care. If this venture is successful, Amazon has all the means and reputation to be a leader in delivering goods in the way of coronavirus-relief for a long time to come.
Besides health, what’s another immediate need that’s here to stay? Food. More specifically, food deliveries. Amazon has now been allowed by the CMA to invest in UK’s food delivery service, Deliveroo, which has been on the brink of bankruptcy. As per the latest reports, the service operates in 5oo cities and 6 countries. Other competitors in the food delivery industry have tried to acquire Deliveroo outright, including Amazon.
Thinking Into The Far Future
Speaking of companies going into bankruptcy, Amazon is taking keen interest in OneWeb’s assets. OneWeb is a global communication company that just filed for bankruptcy this March. This falls in line with Amazon’s plans to scale its own broadband constellation, Project Kuniper. To aid its efforts in the way of its space ventures, Amazon has also finally started merchandizing Blue Origin, by launching its official website, offering branded apparel to promote the mission.
A branded T-shirt is one of the items being sold on the Blue Origin website. (source: Blue Origin)
Whereas Blue Origin’s space missions might be in the far future, electric vehicles are currently on the rise. There’s pressure to reduce carbon emissions and the hunt for less costly alternatives. Manufacturers are already investing in EVs. (Hyundai, Kia Invest 100 Million Euros In Arrival EV Start Up). Let’s not forget that Amazon recently bought 100,000 electric vehicles worth $700 million from Rivian, an American automaker, that is scheduled to manufacture its electric pick-up trucks this year. This is the largest order for electric vehicles in history. We can only wait and see how these plans pan out.
Setting Things Into Motion
Amazon has been using its profits to make itself grow more, but time will tell if this can hold true, or if this could increase compensation for those blessed souls who deliver us goods. Chances are that we could get our vaccination supply delivered, for all we know. Most probably, as it always has, Amazon will pose as a great challenge to its competitors. If it has been successful at reaching the $1 trillion milestone so far, there’s reason to believe that it’s expanding more than ever. The $10.6 billion loss is just another little dent that may be forgotten soon.