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by borski23 hours ago |
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upvoteby whatever123 hours ago|
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If they were targeting 60% margins in grocery they would be bankrupt.

Retail has famously razor thin margins.

But their cash flow came in handy when AWS needed 300B in cash for gpus. Nobody could lend them that amount.

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upvoteby borski23 hours ago|
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I’m familiar with the margins in retail (my parents ran a retail store their entire lives).

My point wasn’t that they don’t do a lot of volume; it’s that their retail business is not what’s driving their profit, and I don’t believe it’s growing.

I wouldn’t be surprised (though have not looked) if DoorDash (with DashMart), Uber Eats (which does more than just food), and Instacart have eaten significantly into Amazon’s revenue by solving the “get it to me” problem even faster.

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upvoteby whatever123 hours ago|
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In the US last mile is super hard because of the super high wages. The only way to work around it is volume per delivery person.

If you do 2 deliveries per hour (like Uber Eats / door dash), you pay essentially $5/order (assuming a super low us wage of $10/hour and no equipment cost/ gas).

So no in the US, Amazon is not threatened by such delivery services.

Now if you go to China, the equation flips. Which is why Amazon failed completely.

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upvoteby malfist19 hours ago|
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Thats the story they tell investors because investors love a growing tech company. But scratch the surface a bit and you see retail shoveling most of it's profit into purchasing AWS.
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upvoteby borski18 hours ago|
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Do you have anything to indicate this? A source or any analysis?
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