It will be key to see if the pace of Amazon’s overall and search ad revenue slows down in the next few years as it exhausts. For now, its ad success is just one more sign, like the news that it will likely sell its Go tech to retailers, that Amazon can find and dominate new businesses beyond its core identity as the Everything Store.
Jeff Bezos likes to say, “Your margin is my opportunity.” Like with Whole Foods and grocery, Amazon moves into new verticals and applies its logistics-first approach to carve out margins, then undercut competitors. It is even getting into shipping, in a move to own its delivery infrastructure.
The next local conquest could be restaurants. For Amazon, it’s not just about serving food, but doing so in a way that aligns with its forte: delivering things to your home. The biggest clues and synergies lie in its established delivery and logistics playbook as well as its recent $575 million investment in Deliveroo.
Enter the cloud kitchen.
This week’s tech giant in hot water? Google, whose abuse-prevention system apparently shut down and threatened to delete a Cloud client’s project in three days due to perceived misdoing on the client’s part.