The question most automobile executives should be asking themselves is, “should car manufacturers fear Amazon”? The answer’s an emphatic YES. By the looks of it, Amazon is in the Car Business and it could more than likely affect car manufacturers.
Should Car Manufacturers Fear Amazon?
For one, let’s look at their market value today, which is currently at $1.5 Trillion. Second, Amazon recently purchased ZOOX, which is a Silicon Valley founded company focusing on Robotic Taxis for $1 Billion. Third, Amazon raised over $1 Billion for electric truck maker Rivian, which they also ordered 100k of their electric; the company’s largest order to date.
So what does that say about Amazon’s intention on encroaching on roadways? In a recent all-hands meeting, Jeff Bezos was quoted as saying he was excited about the automobile industry and how he looks forward to participating in its growth.
Amazon’s Market Value…
Amazon has a $1.5 Trillion Market Value, which overshadows car manufacturers’ market value in existence today. This means that $1 Billion is a drop in the bucket for Amazon and they can keep going. What’s the future look like? Amazon knows and they’re doing everything possible to be at the forefront of that future. Case & Point? Amazon saw an opportunity in the Grocery Stores Industry and went for it by way of purchasing Whole Foods, and during the pandemic, they proved there worth by applying their knowledge of warehousing by making Whole Foods Stores into temporary warehouses. Before that, they took on the Cloud Space and won by being Numero Uno! What makes us think they can’t put a dent in the automobile industry? Just ask Ford’s newly named CEO, Jim Farley who was interviewed by John Cook at Geek Wire…
My only question for Jeff Bezos is, “when will we finally be able to own flying cars”? I know you know!