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The reason that this tends to lower prices for consumers is that these innovations rarely stay confined to the companies that invent them. If this lowers costs
by andrewmutz 7y ago
The reason that this tends to lower prices for consumers is that these innovations rarely stay confined to the companies that invent them. If this lowers costs for amazon to fulfill orders, then these techniques tend to get adopted by their competitors.
And once adopted by competitors, when everyone's margins have increased, these companies do compete on price.
This process doesn't happen immediately but it does happen.
- nitrogen 7y agoWho are Amazon's most likely competitors?
- cavisne 7y agoMight not be true as more problems are solved through machine learning. Amazon has or could generate the largest and most diverse dataset to train the object recognition problems needed to automate a warehouse. They also have the end to end pipeline to evaluate accuracy (damaged or incorrect orders, manual intervention needed in the warehouse). Can a competitor actually catch up without this data?
- hobofan 7y agoSure. The usual strategy would be a joint venture between the second, third, etc. biggest competitors to share the development (and relevant data) for such a technology.