5 ms·
I think what's interesting to know is of that 14 cents, how much of that 14 cents does Amazon keep as profits and how much goes directly to costs. Some analysi
by somethoughts 8y ago
I think what's interesting to know is of that 14 cents, how much of that 14 cents does Amazon keep as profits and how much goes directly to costs. Some analysis suggests AWS has 25% profit margin which means of that 14 cents, Amazon really only pockets ~2-3 cents per Lyft ride.
Another interesting question is whether that profit margin includes the original capex of when AWS was not reporting the revenue/profit of AWS in its early years. There's also all sorts of creative accounting methods to hide capex such that I wouldn't be surprised if Amazon is selling at cost to buy marketshare in a way somewhat analogous to Uber subsidizes rides to gain early marketshare.