- 14 June 2018
- Transport / Logistics Services
Online and retail giant Amazon has surged through the $800bn market capitalisation mark in the last week, in a hard chase behind Apple to become the world’s first trillion dollar company.
As of today its value sits at just over $824 billion, while Apple has a capitalisation of $943 billion. Some analysts believe that Amazon’s value has steam left in it with the potential to outgrow Apple to the $trillion mark this year.
Though much of what Amazon does isn’t retail or logistics (its IT arm Amazon Web Services takes an estimated 73% of Amazon’s income) the firm dwarfs its nearest retail rivals. Once the biggest retail player in the world, Walmart has a market cap of some $252bn while its nearest rival Home Depot is worth $222bn. If you add in US fourth placed retailer Costco ($87bn), all three of Amazon’s immediate US retail rivals combined have a lower market cap than Amazon itself. Indeed, you could throw in several other retailers and they still would not compete!
What this means in e-commerce and logistics is that no matter where CEO Jeff Bezos turns the helm, his firm will make a difference in that sector. Logistics is a relatively new game for the company, and already the logistics partners (such as UPS, DHL and Royal Mail) that helped it grow from nothing over the last 20 years are showing signs of anxiety. The company now looks set to move into high street retail with the checkout-less Amazon Go stores set for roll out, threatening everyone offline the omnichannel retailer has already taken on, online.
These are exciting times in logistics and e-commerce. Watching Amazon for many however is as much of an idle past time as a rabbit watching the headlights of an oncoming car…