Amazon (company)
Overview
Amazon is an American multinational technology company based in Seattle, Washington, which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the world's largest online marketplaces, AI assistant providers, and cloud computing platforms as measured by revenue and market capitalization. Amazon is the largest Internet company by revenue in the world. It is the second largest private employer in the United States and one of the world's most valuable companies.
History
Amazon was founded by Jeff Bezos in Bellevue, Washington, in July 1994. The company initially started as an online marketplace for books but later expanded to sell electronics, software, video games, apparel, furniture, food, toys, and jewelry. In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization. In 2017, Amazon acquired Whole Foods Market for US$13.4 billion, substantially increasing its footprint as a physical retailer. In 2018, Bezos announced that its two-day delivery service, Amazon Prime, had surpassed 100 million subscribers worldwide.
Products and services
Amazon distributes downloads and streaming of video, music, and audiobooks through its Amazon Prime Video, Amazon Music, and Audible subsidiaries. Amazon also has a publishing arm, Amazon Publishing, a film and television studio, Amazon Studios, and a cloud computing subsidiary, Amazon Web Services. It produces consumer electronics including Kindle e-readers, Fire tablets, Fire TV, and Echo devices. Its acquisitions over the years include Ring, Twitch, Whole Foods Market, and IMDb. Among various services, Amazon also offers international shipping of some of its products to certain other countries.
Technology
Amazon's initial business plan was unusual; it did not expect to make a profit for four to five years. This "slow" growth caused stockholders to complain that the company was not reaching profitability fast enough to justify their investment or even survive in the long-term. The dot-com bubble burst at the start of the 21st century and destroyed many e-companies in the process, but Amazon survived and moved forward beyond the tech crash to become a huge player in online sales. It finally turned its first profit in the fourth quarter of 2001: $5 million (i.e., 1¢ per share), on revenues of more than $1 billion.
Criticism and controversies
Amazon has faced numerous criticisms and controversies over issues such as treatment of workers, environmental practices, tax avoidance, and anti-competitive behavior. The company has been subject to boycotts over its treatment of workers and its association with U.S. Immigration and Customs Enforcement. It has also faced lawsuits over its business practices, including a lawsuit by the European Union for alleged anti-competitive behavior.