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I'm not sure about Amazon, but I know Uber was the more recent poster-child for the "operate at a massive loss to win market share then Jack up prices later whe
by passwordoops 3y ago
I'm not sure about Amazon, but I know Uber was the more recent poster-child for the "operate at a massive loss to win market share then Jack up prices later when customers are locked in" strategy to keep the funding going.
I don't see that strategy working again for a long time
- al_borland 3y agoAmazon for sure did this with ebooks, but I don’t think the overall business was operating at a loss. All those profits were used to build out new areas of the business, like AWS.
- hayd 3y agoThere was _brief_ periods of loss, but only when they had a lot of cash on hand... they were putting in basically all their profit back into the business. https://www.macrotrends.net/stocks/charts/AMZN/amazon/net-income https://www.macrotrends.net/stocks/charts/AMZN/amazon/net-in... That's a completely different strategy to investing money the company doesn't have that will (eventually) require additional outside capital/funding rounds.