2019: Became Amazon the most expensive company in the world
Market capitalization of Amazon exceeded on January 7, 2019 a similar indicator of Microsoft corporation therefore the online retailer became the most expensive company in the world, Interfax reported on January 8, 2019.
According to the results of biddings the share price of Amazon flew up for 3.4%, and capitalization reached $796.78 billion. As a result the company for the first time in history became the global leader in this indicator, The Wall Street Journal noted.
For comparison, the market value of Microsoft increased by only 0.1% on the same day — to $783.57 billion. At the end of November, 2018 software the giant overtook on capitalization Apple which market value at the beginning of August, 2018 exceeded $1 trillion, and at the beginning of October — $1.1 trillion. According to the results of the last biddings this indicator of the producer iPhone Mac was also reduced by 0.2% — to $701.99 billion. Thus, as of January 7, 2019 Apple takes the fourth place later Alphabet, the holding company Google which capitalization makes $745.63 billion.
Capitalization of Amazon passed for $1 trillion
On September 4, 2018 market capitalization of Amazon passed for $1 trillion. As a result the Internet giant became the second American company with such indicator along with Apple.
According to Reuters news agency, at biddings on September 4 the cost of securities of Amazon was raised about $2050.5 that provided capitalization in $1 trillion. To closing of the exchange of quotation stopped on a mark of $2039.51 that is 1.3% more than rather previous day.
Since the beginning of 2018 on September 4 of a stock of Amazon grew in price for 74.5% whereas the quotations of Apple during this time increased by 35%.
Investors rewarded Amazon for the improving financial results: so, at the end of July of Amazon announced 13 percent profit increase which for the first time reached $2.5 billion. Steady growth was shown by both division of retail, and cloud business which actively develops and has higher profit margin.
In nine years the share value of Amazon grew by 20 times. So, in 2009 for one security gave about $100, in October, 2017 — $1 thousand, and by the end of August, 2018 — already to $2 thousand. The company went public on May 15, 1997, having placed shares at the level of $1.5.
Amazon was required slightly more than a month to catch up with Apple corporation which reached a point of one trillion in the summer of 2018. By the beginning of September capitalization of Apple approaches $1.1 trillion. At the same time the Amazon corporation needed 160 days of exchange sessions to increase cost from $600 million to $1 trillion.
The Chinese oil and gas PetroChina became the company first in the history with capitalization in one trillion dollars in 2007. However then it did not manage to keep on the taken positions because of a collapse in prices for oil. By the beginning of September, 2018 capitalization of the company makes a little more than $210 billion
Amazon is become in the history more expensive for the first time by Microsoft
During exchange biddings on February 7 stocks of Amazon dropped by 1.14%, as a result market capitalization of Internet giant decreased to $690.4 billion. However the quotations of Microsoft sank even stronger — for 1.83%, having led to decrease in capitalization to $690.3 billion. Thus, the cost of Amazon the first time during all the time was higher, than at Microsoft.
However, by the time of closing of the exchange on February 7 Microsoft outstripped Amazon again. Next day securities of Amazon and Microsoft fell in price respectively more than by 4.6% and 5% to the end of the main biddings. Capitalization of Amazon made $650.8 billion against $655.8 billion at Microsoft, data of Nasdaq demonstrate.
In three days after the publication of financial results of the fourth quarter and all 2017 of a stock of Amazon grew in price for 3.8% whereas papers of Microsoft lost 3.1% of the cost. Such dynamics helped Amazon to outstrip Microsoft at market value, but then the quotations of both companies began to decrease.
In 2017 the quotations of Amazon jumped by 77% thanks to rapid growth of retail and cloud revenues of the company. Growth of share value of Microsoft for the same period was slightly more modest — for 42%.
Since the beginning of 2018 on February 8 of a stock of Amazon rose in price for 21% that there are more growth rates of papers of Alphabet and Microsoft. The quotations of Apple decreased at all.
Exchange growth of Amazon allowed the founder and the head of the company Jeff Bezos to come off the cofounder of Microsoft Bill Gates in the rating of the richest people of the planet. By February 8 Bezos fortune is made by about $116 billion that for $25 billion it is more, than at Gates.
The U.S. presidential candidate suggests to separate Apple, Google, Amazon and Facebook
In the middle of March, 2019 senator and the U.S. presidential candidate from Democratic party Elisabeth Warren suggested to separate such technology companies as Apple, Facebook, Amazon and Google. The campaign of senator got support in social networks. Read more here.
Amazon made mistakes for billions of dollars. Here the largest
At the beginning of March, 2019 the CEO of Amazon Jeff Bezos called the company "the best method to go bankrupt". Bezos created culture in which failure is acceptable and even necessary part of business. The management made the mistakes costing the companies of billions of dollars. The largest of them are given by journalists of BusinessInsider.
Shops phony companies
In March, 2019 it became known of plans of Amazon to close all 87 shops phony companies and to close up this program. These shops had to become live show-windows where the buyers interested in intelligent gadgets, such as Amazon Echo and Fire TV could estimate them in operation before purchase. The released funds will be allocated in Amazon Books shops (sells books) and Amazon 4-star (sells goods with the greatest rating on the website Amazon.com).
Buttons of the fast order
Buttons of the fast order had to offer users a convenient method of replenishment of a commodity basket without need to visit the website. These devices were a transitional stage between online stores and "smart" houses: now, when the AmazonBasics microwave oven can automatically resupply some popcorn, the user simply does not need the separate button for $5.
Amazon Tap was mobile version of popular intellectual columns with Alexa support. But as now Amazon uses Alexa practically in all products, the separate portable device lost the value and was removed from sale.
Investment into the developer of the electric vehicles Rivian
In the middle of February, 2019 the developer electric vehicles Rivian announced carrying out a round of financing according to the results of which the company attracted $700 million. Enclosed Amazon most, however the exact amount of investments does not reveal. Assessment of capitalization of a startup is also unknown. In more detail here.
Purchase of the developer of the eero routers
On February 11, 2019 it was officially announced sale of the developer of the eero routers to Internet giant Amazon. As a result of the transaction the Grishin Robotics fund left a startup. Read more here.
Equipment of employees vests for protection against robots
In January, 2019 began to distribute Amazon to the employees working at warehouses, special vests for protection against collision with robots.
The robot, getting closer to the person with a vest, receives a signal of need to slow down not to allow dangerous contact.
| ||In the past workers marked a grid from zones in which they will work that the robot planning traffic could lay reasonably a route around this area — the vice president of division of Amazon Robotics Brad Porter told the TechCrunch edition. — The vest allows robots to detect the person at distance and was able to update the plan of movement to steer clear of people|| |
The solution of Amazon looks original as other companies using robots configure safety of their operation by installation of sensors and radars on robots, but not on living workers. Thus, in case of failure of sensors on robots those all the same will be able to detect presence of the person nearby and not to allow collision.
Amazon has a set of warehouses and distribution centers of the orders having high extent of automation. The company uses robots for their more high efficiency in comparison with employees.
Robots weigh about 130 kg, move with a speed up to 7.5 km/h and can transport loads weighing up to 280 kg therefore in case of incorrect recognition of the person on a route the robot can put it considerable damages. Several incidents happened on objects of Amazon earlier.
In 2018 the National Safety Council and occupational health (National Council for Occupational Safety and Health) delivered Amazon in the list of the most life-threatening employers in the USA. By that moment seven employees died in warehouses of Amazon since 2013.
Purchase of software developer for optimization of cloud expenses of TSO Logic
In January, 2019 announced Amazon acquisition of software developer for optimization of cloud expenses of TSO Logic. The transaction which cost does not reveal registered cloud division of online retailer — Amazon Web Services (AWS). Read more here.
Use of living Ukrainians instead of AI
In January, 2019 it became known of use of the Ukrainian IT specialists by Amazon company instead of artificial intelligence in work of "smart" calls which allow to write and monitor in real time the one who enters and leaves the house. Read more here.
Closing of Whole Foods shops 365
Whole Foods shops 365 were intended for young buyers with small income. In January, 2019 the company announced closing of similar shops, as the reason having pointed to a difference in the prices which was not repaid.
Closing of Amazon Fresh service
Amazon Fresh is the delivery service of fresh products Amazon on the house. The initiative started earlier Local producer which allowed third-party suppliers to deliver the goods to clients together with orders of Fresh, was closed in 2018 without further explanations.
Leadership in growth of advertizing expenses
At the beginning of February, 2019 the Kantar Media agency published the rating of the world's largest advertisers. The CNBC TV channel paid attention to the 72.5 percent growth of advertizing expenses of Amazon (to $1.8 billion) that became the greatest indicator in the leading ten. Read more here.
Expenses on lobbyism in $14.2 million
At the end of January, 2019 the federal report of the USA on lobbying according to which in 2018 five the technology companies, largest in the country, spent $64.3 million for lobbying of government officials was issued. Expenses of Amazon on these purposes made $14.2 million Read more here.
Purchase of software developer for disaster recovery of data of CloudEndure
On January 10, 2019 officially it became known that purchased Amazon software developer for disaster recovery of data of CloudEndure. The cost of the transaction, according to some information, was $200-250 million Read more here.
24 warehouse workers of Amazon got into hospital after the robot opened a jar with an otpugivatel of bears
On December 5, 2018 the robot in a warehouse of Amazon in New Jersey opened to bank of a bear repellent therefore 24 workers were hospitalized. According to data of ABC News, one employee is in critical condition while 30 more people received incident on-site assistance.
The preliminary research showed that the repellent reminding pepper aerosol for scaring away of aggressive bears fell from the shelf and opened accidentally, but witnesses reported that toxic pairs crashed out when packaging was punctured by the automatic machine packer. In the statement published in day of incident, Amazon explained that all sick employees "will be discharged from hospital within 24 hours". The management of Amazon reported the following:
| ||Safety of our employees was always our main priority, and investigation of an incident is conducted now. We would like to thank all witnesses who helped victims.|| |
Amazon uses robots on the objects long ago. They constantly help workers: from movement of small goods on a warehouse before unloading of stocks from trailers. Amazon annually updates design and the software of the robots that they could solve problems which the automated equipment should collide in warehouses.
Amazon was repeatedly accused of negligent attitude to control of working conditions in warehouses. At the beginning of this year National Safety Council and occupational health entered the company in the Dirty Dozen list as one of the most dangerous places for work in the USA. Experts claim that modern industrial robots provide safer working conditions as reduce risk of injuries or adverse effects for health. However under certain conditions even these automated systems can threaten workers.
China spied on Apple and Amazon via chips in the equipment
At the beginning of October, 2018 it became known that China spied on Apple, Amazon and other technology companies, installing special chips in the equipment used in data centers. The Super Micro company could set these chips. Read more here.
Increase in the minimum wage up to $15 under a barrage of criticism
At the beginning of October, 2018 Amazon raised the minimum wage after a barrage of criticism which fell upon the Internet company in connection with its attitude towards personnel.
Since November 1, 2018, per hour not lower than $15 will get paid more than 250 thousand permanent employees of Amazon and also over 100 thousand seasonal workers who will be employed before New year for processing of huge number of orders.
The innovation concerns not only the USA. The company also raises the minimum hourly wage in agglomeration of London up to 10.50 pounds sterling, and in other regions of Britain — up to 9.50 pounds sterling. Under salary increase 17 thousand regular British workers and more than 20,000 seasonal employees will get. The official minimum of salary in Britain for aged people of 25 years makes 7.83 pounds per hour (data for the beginning of October, 2018).
In the USA by the beginning of October, 2018 the minimum wage makes $7.25 per hour, it was set at the federal level nearly ten years before. Separate states can enter the minima — for example, in New York it equals $9.7 per hour, and authorities of the state intend to increase annually this indicator until it reaches $15 per hour.
Earnings of staff of Amazon will be increased after the public, legislators and labor unions criticized company management, earning billions of dollars, for mismatch of the salary. So, senator Berney Sanders noted that Amazon costs $1 trillion, and workers get paid below average on the industry and " cannot provide themselves with fair work".
| ||We listened to our critics, thought much that we wanted to make, and decided that we want to be ahead — the head of Amazon Jeff Bezos said, commenting on increase in a minimalka.|| |
Bought Amazon 20 thousand Mercedes cars for new service
At the beginning of September, 2018 the Amazon company announced purchase at Mercedes-Benz about 20 thousand cars which will be used in new service of the American Internet company — Delivery Service Partner. Read more here.
Amazon wants to refuse software of Oracle. Larry Ellison says that it is impossible
On August 7, 2018 the cofounder of Oracle Larry Ellison commented on rumors about plans of Amazon to refuse use of the software of Oracle. According to the businessman, Amazon will hardly be able to make it as earlier it did not turn out neither at the company, nor competitors have Oracle. Read more here.
Strikes across the whole Europe
Thousands of employees of Amazon in Germany who work at warehouses of the company came in July, 2018 to a strike, demanding improvement of working conditions, Reuters reports. The one-day action happens at the same time in six locations of Amazon in Germany.
The strike was organized by labor union of workers of services industry Verdi which requires from the company to sign the labor contracts guaranteeing healthy working conditions in the centers of execution of orders with employees.
"The message is clear — the online giant becomes richer, saving money for health of the workers" — Stefanie Nutzenberger, the director of Verdi of a retail segment said.
The head of Amazon Jeff Bezos (Jeff Bezos) became the richest person in a modern story with a status over $150 billion. It broke the record of the founder of Microsoft Bill Gates which status in 1999, at the height of a boom on dotcoms, in terms of today's cost of dollar would make $149 billion.
Germany became the third country of Europe where the staff of Amazon at the moment strikes. Yesterday to the same action there were 1.8 thousand employees of the company in Spain. The strike is staged at the initiative of labor union Comisiones Obreras, the requirement at Spaniards the same, as at Germans.
To a strike there were about 96% of personnel of Amazon in San Fernando where the company has warehouse, approves labor union. It is the largest warehouse of Amazon in Spain, it is near Madrid. The strike will last on July 16, 17 and 18, 2018. Itself Amazon insists that the smaller number of workers joined an action.
Purchase of the online drugstore of PillPack, largest in USA
On June 28, 2018 announced Amazon PillPack purchase. As a result of absorption the American Internet giant becomes the direct competitor to the pharmacy chains, distributors of medicines and the companies managing benefits to drugs. Read more here.
Replacement of highly paid employees by robots
In June, 2018 it became known that Amazon began to replace the highly paid employees with robots. Before automation in the company concerned only manual work in warehouses and in distribution centers.
According to Bloomberg news agency, instead of workers with six-digit salaries which conduct negotiations on transactions for millions of dollars Amazon began to use the special software. Such software predicts products necessary to consumers and sets the optimal price.
The company integrates a command on interaction with large brands with the division which is directly managing the automated sales. For the last months left the company or several high-ranking managers were reassigned, and suppliers of Amazon began to use special software instead of interaction with employees, said in the publication of Bloomberg of June 13, 2018.
According to the edition, Amazon began to automate work of employees in retail a few years ago. The initiative under the name Hands off the Wheel within which the company shifted to computer algorithms such tasks as demand forecasting, the order of goods and even negotiating concerning the price was for this purpose started.
First computers strongly were inferior to people by efficiency of decision making. For example, if the producer notified Amazon on start of a marketing campaign, the manager could increase orders of the promoted product waiting for high demand which the machine could not foresee. However over time algorithms were improved, became more precisely and more and stronger extended on activity of the company. Reached that the managers announcing action which differs from the choice of the computer had to prove the case that did not want to be done often.
| ||Understood Amazon that many expensive employees spent a great lot of time for work with what should be automated. Digits do not lie: this model is more profitable — says working as the manager in the company in 2014-2016 Elaine Kwon.|| |
The turning point came in 2015 when sales through the digital platform appeared more total cost of goods which were sold by a command on retail. After that many brands decided to interact with the computer platform, but not with living sales specialists as in this case they regulate the prices, images and product descriptions,
As a result the people working in riteylersky department of Amazon lost one of the key functions — negotiating with large producers concerning placement of goods on a special discount in the section "A discount of day". Now instead of contacting the manager of Amazon, the companies are registered on the website, and their requests are processed by software.
| ||Computers know as when to buy when to offer the transaction and when it to do are not necessary. These algorithms covering thousands of input parameters are always more smart than any person — the former director of Amazon Neil Ackerman (Neil Ackerman) who by June, 2018 manages a supply channel in Johnson & Johnson company reported.|| |
In future Amazon even less people for management of retail business will be required. According to the supply chain management expert Joel Sutherland who teaches in San Diego State University, anybody, except Amazon, has no such quantity of resources and experience which allow to integrate new technologies to reduce quantity of labor power and to increase at the same time reliability and accuracy of transactions.
How many directors and employees earn
The founder and the CEO of the company Jeff Bezos at the end of 2017 earned about $1.68 million from the post. Salary in the amount of $ 81,840 and $1.6 million in a payment type for security of the head entered this amount. Bloomberg notes that the compensation packet of Bezos does not change since 2012.
The average annual wage of staff of Amazon for 2017 made $ 28,446 that is 59 times less, than at the head. Payments to personnel in Amazon are much lower, than in the IT companies of Silicon Valley, The Register notes. For example, in Facebook the average salary of workers exceeded $240 thousand.
However, the staff of Amazon totals 560 thousand people, many of them do not work in Silicon Valley, besides, in the company many employees working part-time (mainly in the logistic centers). In the United Parcel Service company (the large partner of Amazon) specializing in express delivery and logistics, employees receive approximately $ 53,433 a year from the employer.
Amazon notes, employees work more than in 50 countries, and in each of them the company offers the highly competitive salary and bonuses, such as awards in the form of actions, health insurance, pension savings, a child care leave and professional development course.
How many the head of cloud division of Amazon Web Services (AWS) Andrew Jassy in 2017 earned, it is not specified. In 2016 to it paid out wages of $179 thousand and also $35.4 million in the form of stocks of the company. Then Jassy was the highest paid top manager in Amazon, having been ahead even of Jeff Bezos.
By April 19, 2018 Bezos owns about 79 million stocks of Amazon or 16.3% of a total quantity of the securities which are in circulation. In 2017 the company did not pay to the head bonuses in the form of actions.
Closing of Amazon Restaurants service
In April, 2018 Amazon closed delivery service of food from Amazon Restaurants.
Employees of Amazon urinate in bottles because of fear not to implement the plan
On April 17, 2018 it became known that some staff of Amazon working at warehouses of the company so is afraid to lose work that do not even spend working time on going to the bathroom.
The author of the book about low compensation James Bloodworth went under cover to a warehouse of Amazon in Staffordshire, Great Britain. He found out that workers who run on huge warehouses of Amazon, completing goods for delivery, use bottles instead of a toilet because bathrooms are located too far, and it is necessary to spend a lot of working time that to reach them.
According to the The Sun edition, people urinated in bottles because of fear to be reprimanded for idle time in work and to lose the place only because they need to go to the bathroom.
It is known that Amazon monitors how quickly her warehouse workers find and pack goods, in the company breaks are also strictly regulated and work plans are formed. The workers who are not implementing the plan, or taking a frequent break receive warnings.
According to results of anonymous poll, nearly three quarters of employees of point of processing and execution of orders in Great Britain were afraid to use a toilet because of unwillingness to spend on it working time. In poll published on April 16, 2018 241 employees of a warehouse of Amazon took part in England.
One of respondents told that goods quantity which need to be packed "sharply increased" and that he "does not drink water because there is no time to go to a toilet".
According to other participant, planned targets grow every year. It is necessary to pack two goods a minute. Pack 120 goods per hour very difficult, he was recognized.
In an interview to the The Verge portal Blevert told that the warehouse of Amazon is similar to prison or the airport with security scanners installed in it which check workers for existence of the prohibited objects, such as Tolstoyans, sunglasses and phones.
Poll made using the website of responses of employees about employer Organize also showed that respondents began to be nervous much more after got a job in Amazon.
According to Organize, increase in planned targets harmful affects a mental status of employees - 55% of employees reported that they have a depression, working in Amazon. Over 80% of respondents told that they will not work in this company any more.
Workers say that they are punished for the fact that they are ill. One employee reported that she badly felt during pregnancy, and all the same received a warning.
Amazon disproved these statements, having said that the company guarantees to employees free access to toilets and provide comfort in a workplace. Representatives of the company said the following in the statement of Business Insider:
| ||"Amazon provides a safe and positive working situation for thousands of people in Great Britain with the competitive payment and privileges available from the first day of work. We have no proofs that the people participating in poll work in Amazon, and we do not recognize these statements as the exact description of the events at offices of the company. We pay special attention to providing excellent working conditions for all our employees, and in March, 2018 Amazon was called the seventh most popular company to which people in Great Britain aim to get. Amazon also offers excursions to the enterprise that clients could see directly what occurs after they buy a thing on Amazon.|| |
Strike in Spain
In March, 2018 the staff of Amazon came to a two-day strike, showing discontent with the salary and overtime work.
According to The Associated Press agency, about 150 employees of the logistic center, largest in Spain (is in San Fernando - Enares on the outskirts of Madrid) belonging to Amazon took to the streets with the lit fusees, flags and banners.
The protesting employees of Amazon demand improvement of working conditions because of the increasing loading and also prolongation of the collective agreement which action expired in December, 2016 and was increased by negotiating time. It is reported that the company wants to transfer personnel to the new contract which, according to workers, reduces payments approximately on a third and also does not guarantee compensation for overtime work and payments due to illness. Besides, in labor unions say that Amazon reduces the staff of specialists and redistributes duties of the dismissed people among less qualified employees.
Amazon abstains from informative comments and say that "competitive" salary which will be increased since April, 2018 is paid to workers. Workers claim that salary was not raised since 2016.
Labor unions called a strike successful and reported that 98% of workers of the logistic center opened in 2012 in San Fernando - Enares ceased to work. In total there 1500 people working temporarily or the whole day work. They pack goods for clients in Spain and Europe. Because of a strike of Amazon it is forced to reject some orders and to delay the goods delivery.
The labor union "General Union of Workers" hopes that the strike will force company management to sit down at the negotiating table concerning the new agreement with employees. At the end of 2017 strike was gone by the staff of Amazon in Italy, France and Germany.
Amazon was purchased by Ring for $1 billion
On February 27, 2018 announced Amazon purchase of the developer of smart doorbells Ring. Though the price of the transaction of the company was not set, Reuters and The Wall Street Journal is known of it — $1 billion Read more here.
Development of chips
In February, 2018 it became known of development of own chips by Amazon company. They are focused on the computing tasks connected with the artificial intelligence (AI).
That decided to become Amazon the chipmaker, reported the The Information edition with reference to own sources. The American company confirmed creation of chips, but refrained from further comments, having only noted that Amazon aims to follow trends in the market.
The interlocutor of The Information familiar with plans of Amazon says that the semiconductor solution in which development the Internet giant was engaged will help devices with the voice assistant to Alexa more effectively to carry out tasks, "processing more data on the gadget, than in a cloud".
According to the edition, the companies Apple and Google which together with Amazon can painfully strike at business of traditional producers of graphic processors, it seems also work on own chips for artificial intelligence Nvidia.
And Apple already began to implement solution AI in the equipment. In the A11 Apple processor the neural network which allocates with algorithms of machine learning the system of face recognition Face ID and the platform of augmented reality ARKit is used.
As notes the ARS Technica resource, possibilities of Alexa service constantly grow as third-party developers think out new features for it. With respect thereto it becomes logical that with evolution of these skills of technology more and more resources are required, and cloud computing means a certain delay. Own chip on the device undertakes a part of loading, accelerating work of the assistant.
In day when it became known of intentions of Amazon to enter the market of chips, stocks of the company rose in price almost for 1%. For the last 12 months they grew in price for 64%.
On February 12, 2018 the Reuters agency reported that paid Amazon $90 million for acquisition of the developer of the cameras Blink which was announced at the end of the 2018th. In more detail about the transaction here.
Creation of the medical company
On January 30, 2018 Amazon, Berkshire Hathaway and JPMorgan Chase announced creation of the joint medical company for the purpose of quality improvement of health care and reduction in cost of medical services for the employees in the USA. The name of new legal structure by the time of the announcement is not told. Read more here.
Sqrrl purchase — the supplier of means of investigation of cyberincidents
At the end of January, 2018 information that Amazon Web Services, division as a part of Amazon, redeemed the Sqrrl Data Inc. company specializing in development of systems of advanced detection of threats for large corporations appeared. Transaction amount with AWS does not reveal, but, according to some data, it exceeds $40 million Read more here.
Expenses on lobbying
At the end of January, 2018 it became known that the American IT giant Apple Amazon, Facebook and Google in the 2017th spent the record amount for lobbying of the interests and attempt to influence the American authorities — nearly $50 million.
The world's largest online retailer Amazon spent $12.8 million for the same purposes, having increased costs for lobbying honor by 4 times in comparison with an indicator of 4-year. The company tried to obtain mitigation of policy on a wide range of questions, beginning from taxes on online sales and finishing with implementation of commercial drones for delivery of Internet purchases. Read more here.
Scandal with a call of prostitutes from working computers
In December, 2017 the e-mails of staff of the leading American IT corporations addressed to souteneurs and underground brothels in Seattle fell into hands of journalists of Newsweek. Correspondence with those who earn from sex trade and services of prostitutes from Asia was conducted directly with working computers. Read more here.
Payment of 100 million euros penalty for evasion of taxes
In December, 2017 the Italian tax authority announced that the Amazon company agreed to pay 100 million euros the penalty for evasion of taxes.
As specified the Italian regulator, the agreement on payment of 100 million euros concerns both all-European, and Italian of divisions of the company — Amazon EU S.ar.l and Amazon Italia Services srl respectively.
Confirmed to Amazon that reached with the Italian authorities the agreement "for the past", but did not begin to disclose details.
Explained small tax deductions in Amazon with the small taxable profit of the company in Italy which, in turn, is connected with lack of considerable investments into development of local business.
Amazon entered the Italian market in 2010. In seven years the company spent for the activity in the country more than 800 million euros. By December, 2017 the quantity of the jobs provided to Amazon in Italy is about 3 thousand. In May, 2015 Amazon created in Italy subsidiary company on which expenses, revenue and profit on retail sales are registered since then.
More than once it was Amazon in the center of the juicy tax scandals. So, fall of 2017 the European Commission demanded from the company to return to Luxembourg 250 million euros received as a result of illegal tax benefits.
As notes Bloomberg, the Italian government fights many years against deviation of the international corporations from payment of taxes, having made this fight one of the priority directions of the policy. In May, 2017 Google agreed to pay the country 306 million euros for settlement of tax claims.
Difficult working conditions of drivers of Amazon
In December, 2017 it became known that drivers of the delivery service of Amazon should deliver up to 200 sendings a day, the salary below minimum admissible is paid to them and also they are forced to celebrate need in bottles as they have no time to take a break.
Drivers told the The Sunday Mirror edition that they regularly work longer than a legal maximum at 11 o'clock in day and also break the high-speed mode to implement the plan for delivery, because of traffic jams, the blocked roads or difficult weather conditions.
The British Agency according to standards of driving and transport (DVSA) promised to begin investigation after drivers complained of conditions which they should face on delivery sendings of Amazon.
The Leigh Day law firm which processed case against Uber company represents the interests of seven drivers saying that the agencies cooperating with Amazon treat them badly.
Amazon does not work with drivers directly, they are employed by the third-party agencies. Drivers use mobile application of Amazon and follow the delivery routes made by the company. Distribution and quantity of stops, as well as volume of the delivered sendings for every day, are established only by Amazon company.
Answered Amazon that routes are calculated by means of the "difficult software" considering intensity of traffic flows and restriction of speed.
Nevertheless, drivers who should implement the plan to 200 sendings daily, say that traffic jams, weather conditions and restrictions of speed make impracticable delivery of all sendings timely.
Many miss a lunch and are forced to celebrate need in plastic bottles, and in certain cases drivers deliver sendings after work — at 9 p.m. and later as in the afternoon of receivers does not stay at home.
One worker told journalists that Amazon sent to all managers the letter in which asked to check that drivers did not carry with themselves a bottle with urine.
Many drivers employed in Amazon by Prospect Commercial company also express concern because of the labor conditions.
They said that their working day makes till 12-14 o'clock, and the salary of only £103 a day, at the same time they pay £200 a week for lease of the van and an autoinsurance.
The 50-year-old driver reported to the edition that once he brought home only £160 in a week after paid for lease of automobile phones and fuel which cost to it has to be compensated later. The representative of Amazon reported to the The Sunday Mirror edition the following:
| ||More than 100 enterprises for all Great Britain provide jobs to thousands of people delivering sendings to buyers. We seriously intend to take care of that the employees hired by our independent service providers of delivery received fair compensation of work that they were respectful to them, followed all applicable laws, rules of driving, and safely went. Our service providers of delivery should guarantee minimum payment to drivers of 12£/hour to deductions and bonuses, stimuluses and reimbursement of expenses for fuel.|| |
Prospect Commercial said that the staff of the company works much to provide good service and the favorable working atmosphere to the self-employed drivers working under the contract. Besides, affirms that the company provides competitive compensation to contract drivers who get paid above the state minimum, and it is regularly checked. 
Amazon seized $3.6 million from the partner swindler
At the beginning of December, 2017 Amazon won the legal claim for $3.6 million against the Beautyko company selling clothes and stock for fitness in Amazon.com online store.
In the claim submitted to district court of the USA in the Western Washington in November, 2017, Amazon accused the partner of fraud using the automatic system of submission of requests.
Follows from court documents from which excerpts are published by GeekWire that Beautyko sold to Amazon physically identical goods under different names and flooded warehouses of Internet giant with unnecessary products which Amazon could not neither implement nor return to the supplier.
Having noticed accumulation of goods from Beautyko, Amazon made investigation and found out that the surplus reason — manipulations with its automatic system of purchases. Amazon contacted Beautyko to return excesses, however the vendor refused to accept goods back. As a result of Amazon it was necessary to liquidate unnecessary products that entailed losses for the amount of $4 million.
| ||Amazon does not accept fraud. The company allocates considerable funds for maintenance of honesty on the marketplace. Among the undertaken measures — claims concerning the violators resorting to unfair practice. We intend and to act in the same way from now on. Amazon constantly implements innovations for the benefit of the buyers and sellers they could make purchases and sell goods with confidence in Amazon, said in the statement of the company.|| |
Meanwhile, CNET announces one more legal claim about the fraud initiated by Amazon. As defendants in it Adam and Adam Christopher Bowser from Massachusetts act. Brothers speculators offered expensive seminars, promising to teach secrets which will allow to earn several thousands of dollars a month from trade in Amazon, spending for it less than an hour a day. By the beginning of December of the 2017th trial on this case continues.
Imprisonment of the employee for sale of confidential data
In December, 2017 it became known that the former financial analyst of Amazon Brett Kennedy was sentenced to six months of imprisonment and a penalty in the amount of $2500 for leakage of confidential financial information about quarterly revenues of the American Internet company. Read more here.
Replacement of 75 thousand employees with robots in 2017
On December 4, 2017 the Amazon company stated that the number of staff of the company grew by 40% in comparison with the same period of last year. For the end of 2016 of Amazon was the eighth in value private employer in the USA. The Internet giant also announced plans to open the second headquarters in the USA in which 50 thousand employees will work.
According to the Quartz edition, when preserving a trend of substitution of work of living people robots the number of the employees of Amazon involved in retail will be laid off approximately by 1% in 2017 concerning the 2016th. Though it is small percent, but 170 thousand can lose work human.
Increase in number of staff of Amazon will not be able to offset losses of the personnel in retail. According to observers of Quartz, Amazon will maintain the current growth rates of number of staff and will hire 146 thousand employees worldwide in 2017 therefore the gain of the state will make 43%. However even taking into account this growth cumulative employment in retail business of Amazon and adjacent areas nevertheless will decrease by 24 thousand human.
The Quartz edition reports that for the first three quarters 2017 of Amazon replaced employees of 55 thousand robots, and their number quickly grows. The company stated that at the end of 2016 it had 45 thousand robots, by the end of the first half of 2017 the state was filled up by 35 thousand robots, and in the third quarter 2017 the company "employed" 20 thousand more Quartz assumes that in the fourth quarter the number of robots will increase by 20 thousand that in total will make 75 thousand new robots in 2017. Though can be difficult to explain the reasons of these changes, to easily see communication between reduction of 24 thousand employees and increase in number of employees robots, Quartz considers.
Growth and efficiency of Amazon (thanks to artificial intelligence and automation) — the key reasons of good financial results. The company increases the investments into robotics, and, under an assumption of Quartz, machines can make 20% of the total number of employees for the end of 2017. Growth of automation leads to increase in efficiency that pleases investors of Amazon, especially in comparison with a situation in retail trade in general. While index S & P Retail in 2017 remained at the previous level, stocks of Amazon rose 57%.
Main article: As robots replace people
Closing of Quidsi service
Amazon closed Quidsi service in 2017, having said what will never be able to make it profitable. The Quidsi company was purchased for $545 million, it owns the world's largest online store of children's goods Diapers.com and also such projects as Soap.com, Wag.com, BeautyBar.com, Casa.com and YoYo.com.
Growth of the state to more than 500 thousand human
It is difficult to provide that the company with staff of 382,400 people can increase the number of employees by 77% in only three months. However it made Amazon — by the end of September the staff of Amazon reached 541,900 people, having increased by 159,500 people since the end of June.
The most part of a staff increase, about 90,000 people, is caused by absorption in August of Whole Foods company. The unnamed number of employees from remained 70,000 came as a result of absorption of Souq.com — the Middle Eastern large e-retailer purchased by Amazon in the second quarter. During the quarterly conference the chief financial executive of Amazon Brian Olsavski (Brian Olsavsky) reported about it to analysts. Excepting transactions with Whole Foods and Souq.com, staff of Amazon grew by 47%, Olsavki added.
However Amazon will continue to grow: it is going to employ 120,000 more seasonal workers for work in warehouses and in customer service centers. Also in the company the whole army of office workers works: on the website of Amazon about 14000 vacancies, 7000 of which — software engineers are opened. Also 2500 more vacancies of specialists in sales, generally for distribution of cloud services of Amazon Web Services among corporate clients are placed. For accommodation of the huge staff the company considers the possibility of opening of the second main office.
It is interesting that Amazon increased the most part of the state in the last 10 years — 9 years ago the retailer was an employer for only 20,000 people, and 5 years ago the state made 81,000 people. The company doubled the state for only 5 last quarters, said in the publication BI of October 26, 2017.
Start of service of the fast goods delivery Instant Pickup
In 2017 provided to Amazon a new method of goods receipt within several minutes after the order, having called it Instant Pickup. Clients could order snack, drinks and necessities in the application of Amazon and to use a barcode for receiving purchases in special places of issue. The employee of Amazon had to place goods in Instant Pickup locker within several minutes from the moment of order placement. However Amazon turned off this service several months later without any explanations.
Creation of the new headquarters for $5 billion
On September 7, 2017 announced Amazon plans to build the new headquarters in which tens of thousands of people will work. The Internet giant will invest $5 billion in this project. As much Apple spent for creation of the new headquarters in the form of the spaceship in Cupertino (the State of California, the USA), the Reuters agency notes.
Was not defined by Amazon yet where the new office will be constructed. It is known only that it is North America. The company asked the authorities of the cities and states to send offers to construction of the facility.
Requirements of Amazon to the city in which the second headquarters, the following can be built: the population exceeds 1 million people; "stable and favorable business environment", high potential of attraction and deduction of talented technical specialists. In a new campus about 50 thousand highly paid jobs will be created.
Added to Amazon that will employ to the new headquarters as residents of this city, and those who will want to replace work location in Seattle for the sake of new collective.
According to the founder and general Amazon of Jeff Bezos, the new headquarters will be comparable to operating — in Seattle (State of Washington). It occupies 33 buildings with a total area about 752.5 thousand square meters. There more than 40 thousand work human.
According to estimates of Amazon, existence of the headquarters in Seattle allowed the city to save about $38 billion during the period from 2010 to 2016.
So it is profitable to region to have Amazon headquarters in the territory. Considering that income and volume of business of the company promptly grow, cost efficiency from projects of Internet corporation will also increase.
According to forecasts of analysts of MKM Partners, within eight years market capitalization of Amazon will treble and will reach $1.6 trillion. By September 7, 2017 the cost of the company is $465 billion. Since the beginning of year of an action rose in price for 29%.
Capitalization of Amazon for the first time passed for one half-trillion dollars
On July 26, 2017 capitalization of online retailer Amazon at the Nasdaq exchange for the first time exceeded $500 billion. Since the beginning of year the cost of the company grew by $146 billion. On Wednesday stocks of Amazon added 1%, having reached as of price of $1050 8:30 p.m. Moscow time for paper.
The founder of Amazon Jeff Bezos who possesses about 17% of Amazon in connection with capitalization growth can become the richest person of the world according to Forbes already in the nearest future, having been ahead of Bill Gates. According to the Forbes online counter, the separation of the founder of Microsoft from Bezos was reduced less than to $1 billion. Gates and Bezos's statuses make $90 billion and $89.1 billion respectively.
Start of Amazon Restaurants in Great Britain
Amazon Restaurants is a service which uses the same workers of delivery, as Amazon Prime Now, but delivers freshly cooked dishes from restaurants. In London service was started in 2016, but already in the 2018th stopped the existence. Explained to Amazon it with the high competition in the delivery market.
The world leader of the cloud market with revenue of $12.22 billion
At the end of 2016 Amazon Web Services remains the leader of the cloud market with operating profit in 3.1 bln. dollars at total sales of $12.22 billion (in 2015 revenue made $7.88 billion).
Closing of Amazon Local Register
Amazon Local Register allowed small enterprises to accept credit card payments through processing system of payments of Amazon using the device for the reading memory cards connected to the smartphone. In 2015 Amazon stopped this initiative.
Amazon Local Closing
In 2015 the Amazon Local service which provides to the user information on the most advantageous offers in the region of its accommodation was closed.
Amazon Destinations Closing
In April, 2015 Amazon was started by Amazon Destinations — the hotel booking website in such large cities as New York or Seattle. Service existed not for long and was closed in October of the same year.
Amazon Webstore Closing
Till 2015 Amazon had an Amazon Webstore platform which helped the small companies to create own online stores and without problems to begin online trade. In 2015 announced Amazon closing of the platform. After Amazon entered cooperation with Shopify, sending the former clients to this company.
Former employees of Amazon accused the company of ruthless working conditions
In the middle of August, 2015 the The New York Times newspaper (NYT) published article devoted to difficult working conditions in Amazon. The head of the company Jeff Bezos hurried to refute the critical statements made by former employees of online retailer.
In particular, ex-employees of Amazon told journalists that the company management ruthlessly dismissed all who did not show the required level of efficiency.
On shoulders of some employees of Amazon enormous loading laid down: they had to work overtime, including at night. One of interlocutors of the edition who worked in the company about two years, said that almost all his colleagues cried at work.
Also follows from article of NYT that to the staff of Amazon did not allow to be recovered after a disease even if it was talked of oncological diseases or abortions at women. Among the male half of personnel there was a set dissatisfied with the fact that under pressure of the administration and colleagues they could not find time for family therefore were forced to leave or at least to think of it.
The edition polled more than 100 former employees of Amazon, and many of them noted the overestimated requirements to personnel, disrespect for private life and excessive workload.
Jeff Bezos reacted to this publication with the letter sent in the company.
"I do not learn this Amazon and very much I hope for that, as you too. Article describes not that Amazon that I know, and not those "amazonets", side by side with which I work every day" — the CEO said.
According to him, the publication describes Amazon as the company in which prevail "heartless management practice" where there is no sympathy to the people who endured the tragedy or problems with health where there is no place to fun and laughter and where only a heartless, gloomy workplace.
Jeff Bezos asked all employees who faced similar pressure in the company, without delay to report about it to it by e-mail or personnel department.
Amazon stops work in the Crimea
The American company Amazon stops customer service, using cloud services of Amazon Web Services (AWS), TASS with reference to the notification received by clients reports. In it it is specified that till February 13, 2015 users should delete the accounts.
"Your account of AWS has the registered address for billing in the region Crimea. Because of the economic sanctions which are recently announced by the government of the United States which prohibit export or delivery of services to the Autonomous Republic of Crimea you should delete all resources from AWS and close the account AWS at 12 in the morning on the Pacific time, on Friday, February 13, 2015", said in the letter of the company which quotes the agency.
Amazon warned clients that if they do not follow this instruction, accounts will be deleted forcibly.
The I quarter: The cloud business revenue grew by 50% to $1.57 billion
On April 29, 2015 Amazon.com Inc published results of the I quarter 2015, than drew attention of investors.
The cloud business revenue, in comparison with previous year, grew almost by 50% and reached $1.57 billion that made about 7% of total income of online retailer. Operating income of division grew by 8% and reached $265 million - steady profit margin in 16.9%.
Jeff Bezos, the head of Amazon, said: "Amazon Web Services is a five-billion business, and it grows more and more in high gear".
Cloud computing was more profitable, than it was expected, analysts noted. Cloud services of Amazon make profit, and a year ago they, probably, too were profitable, nevertheless all thought as if the company loses money.
Total income of Amazon in the I quarter 2015 increased by 15% - to $22.72 billion - it was better than expectations of analysts ($22.39 billion) that caused rise in share price of the company. However according to the results of a quarter of Amazon announced losses in $57 million (in comparison with an indicator of profit of $108 million in 2014) as it continued to make investments in new products and services.
The production schedule of feature films on Amazon Studios
The Amazon company intends to start production of feature films in 2015 and to release on dozen of movies a year for demonstrations at movie theaters and through video service of Prime Instant Video company, reported on the website of Amazon. The division of Amazon Studios company created in 2010 will be engaged in release of movies. Before it released a number of series, one of which, Obvious, was conferred the last award Golden Globe in category "The Best Television Comedy".
Movies will appear at first at movie theaters, and four-eight weeks later to appear on Prime Instant Video, the cost of a subscription to which is $99 a year. Usually feature films get on video services only in 39–52 weeks after the premiere at movie theaters, the report says.
"Our purpose – to create up to 12 movies a year, is going to begin production this year. We hope that we not only will be able to provide to clients of Prime Instant Video fascinating, unique and exclusive movies soon after their premiere at movie theaters, but also we will give new opportunities to producers of pictures which too often should fight that the new movie reached screens", - the vice president of Amazon Studios Roy Price said.
Announcement of the Firephone smartphone
Firephone — the Fire tablet in the form of the smartphone — was provided in June, 2014. However phone received bad reviews of critics due to the lack of many functions and high price, and soon Amazon reduced the price from $200 to $0.99, and in a year completely stopped release of these goods. Critics consider Firephone the first and biggest failure of Amazon. In October of the same year in the quarterly profit and loss statement of Amazon the line about write-off of $170 million, "first of all in connection with liquidation of stocks of Firephone and payment for the services of suppliers" appeared.
Amazon Wallet Closing
The Amazon Wallet service which represented the application for Android where gift cards and cards of regular customers for different shops were stored was started in 2014 and closed in half a year of existence.
2013: Return to profit after a loss the previous year
2012: Closing of Endless.com
In 2012 Amazon closed Endless.com online store which became the first independent brand for online purchases outside Amazon.com in due time. The main attention was paid to fashionable footwear and accessories. After closing of service his visitors of the website began to be redirected on the Amazon.com/fashion page. The same fate comprehended the website MyHabit.com though his visitors are not redirected on Amazon.com any more.
2010: Revenue grew by 40% to $32.4 billion
Revenue of the company in 2010 grew by 40% and reached 32.4 billion dollars. A series of readers for reading Amazon Kindle e-books is considered the leader among specialized devices for reading in the USA.
2007: Revenue of $14.835 billion, net profit — $476 million
Revenue of the company for 2007 — $14.835 billion, net profit — $476 million. Capitalization for July 25, 2007 — $35.3 billion.
1998: Start of sales of music and video
In June, 1998 the shop begins to sell music records, and in November of the same year — the video production. After Amazon.com began to cover already 34 types of goods, including e-books, consumer electronics, children's toys, food, household goods, sports goods and many other things.
1995: Jeff Bezos starts online store selling books
The company won success thanks to the unique corporate policy. Amazon.com the first managed to use the capacity of the Internet: an opportunity to address the much bigger number of clients, than at normal "physical" shop, the bigger number of names of goods which is not limited to what is available in a warehouse.
One of lines of the website of online store — the fact that buyers can leave comments about the purchased goods and estimates them. It helps to select the necessary thing of high quality.
- ↑ Became Amazon the most expensive company
- ↑ Amazon touches of $1 trillion, on pace to overtake Apple
- ↑ Amazon's market value on verge of beating out Microsoft
- ↑ AMAZON BUILT VESTS TO PROTECT WAREHOUSE WORKERS FROM ITS ROBOTS
- ↑ Amazon workers hospitalized after warehouse robot releases bear repellent
- ↑ WHY AMAZON REALLY RAISED ITS MINIMUM WAGE TO of $15
- ↑ of Software to the whole Europe strikes in Amazon began
- ↑ Amazon’s Clever Machines Are Moving From the Warehouse to Headquarters
- ↑ salary in Amazon many times is less than IT companies of Silicon Valley
- ↑ ider.com/amazon-warehouse - workers-have-to-pee-into-bottles-2018-4/Undercover author finds Amazon warehouse workers in UK 'peed in bottles' over fears of being punished for taking a break
- ↑ Amazon workers in Spain on a 2-day strike over pay, overtime
- ↑ Amazon Is Becoming an AI Chip Maker, Speeding Alexa Responses
- ↑ Amazon Web Services acquires advanced threat detection startup Sqrrl
- ↑ Amazon to pay 100 million euros to settle Italy tax dispute
- ↑ Amazon to Pay of $118 Million to Settle Italian Tax Probe
- ↑ Amazon drivers 'are asked to deliver up to 200 parcels a day for less than the minimum wage and they even have to urinate into bottles to keep pace'
- ↑ Amazon wins of $3.6 M in lawsuit against vendor that manipulated automated purchasing system
- ↑ Get rich quick on Amazon? Lawsuits target alleged scammers
- ↑ There are 170.000 fewer retail jobs in 2017 — and 75.000 more Amazon robots
- ↑ Amazon plans of $5 billion second headquarters in North America
- ↑ Capitalization of Amazon for the first time passed for one half-trillion dollars
- ↑ Inside Amazon: Wrestling Big Ideas in a Bruising Workplace
- ↑ with CNews: Amazon stops work in the Crimea
- ↑ Cloud business of Amazon is quite profitable
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