Tag: facing

13
Oct
2020
Posted in technology

Amazon is facing a ‘high-stakes shipping gauntlet’ just months after recovering from widespread delays, as it attempts to pull off its biggest Prime Day ever



a person riding on the back of a truck: Amazon is bracing for its biggest Prime Day ever. Sean Gallup/Getty Images


© Provided by Business Insider
Amazon is bracing for its biggest Prime Day ever. Sean Gallup/Getty Images

  • Amazon’s 48-hour Prime Day event started early Tuesday morning. 
  • Moody’s analyst Charlie O’Shea told Business Insider that Prime Day will serve as a litmus test to see if Amazon is able to keep up with its exponential growth.
  • The sales event will trigger a surge in orders that will weigh on Amazon’s delivery network, with Moody’s estimating that the company’s fourth-quarter shipping expenses could reach nearly $20 billion.
  • “They’re doing the best they can,” O’Shea said. “It’s almost like trying to plug a dam with your finger.”
  • Visit Business Insider’s homepage for more stories.

Amazon just kicked off what Moody’s says will likely be the biggest — and most challenging — Prime Day of all time. 

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The e-commerce giant’s 48-hour Prime Day began early on Tuesday morning. The annual sales event is later than usual this year, with Amazon postponing Prime Day due to the coronavirus pandemic. But Amazon’s decision to delay the massive day of sales does not guarantee the company will be able to escape a tangle of logistical challenges and shipping delays — which could infuriate customers. 

“With the 48-hour window for Prime ‘Day’ imminent, and Amazon sure to face logistical challenges due to the inevitable surge in orders, the online leader is once again facing another high-stakes shipping gauntlet,” Moody’s analyst Charlie O’Shea wrote in a report on Monday. 

O’Shea told Business Insider in an interview that Prime Day is the lastest litmus test for Amazon’s exponential growth.

The competitive landscape “has never been tougher,” O’Shea said, as rivals like Walmart, Target, and Costco have thrived during the pandemic in part because of their ability to mix online sales with brick-and-mortar stores. Amazon, meanwhile, struggled with delays

12
Oct
2020
Posted in technology

EU targets Big Tech with “hit list” facing tougher rules

A Facebook logo in front of an EU flag in this photo illustration on November 20, 2017.
Enlarge / A Facebook logo in front of an EU flag in this photo illustration on November 20, 2017.

EU regulators are drawing up a “hit list” of up to 20 large Internet companies, likely to include Silicon Valley giants such as Facebook and Apple, that will be subject to new and far more stringent rules aimed at curbing their market power.

Under the plans, large platforms that find themselves on the list will have to comply with tougher regulation than smaller competitors, according to people familiar with the discussions, including new rules that will force them to share data with rivals and an obligation to be more transparent on how they gather information.

The list will be compiled based on a number of criteria, including market share of revenues and number of users, meaning the likes of Facebook and Google are likely to be included. Those deemed to be so powerful that rivals cannot trade without using their platforms could also be added.

The move to gain new powers is part of a growing effort in Brussels to force big technology companies to change their business practices without a full investigation or any finding that they have broken existing laws.

It follows complaints that the current regulatory regime has resulted in weak and belated action, which has done little to foster competition.

The number of companies and the precise criteria for the list is still being discussed, but it is the latest indication of how serious the EU is about coming up with powers to limit the power of platforms seen as “too big to care.”

“The immense market power of these platforms is not good for competition,” said a person with intimate knowledge of the discussions.

The proposals, which are still being discussed among senior EU officials, could