tag:blogger.com,1999:blog-5249997465016074955.post412946478207593696..comments2023-12-23T21:59:20.634-08:00Comments on The Ad Contrarian: Amazon And HypochondriaBOB HOFFMANhttp://www.blogger.com/profile/05158827977385952634noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5249997465016074955.post-15742426540215554882014-12-12T23:50:20.597-08:002014-12-12T23:50:20.597-08:00It sounds a lot like what Fiat's business mode...It sounds a lot like what Fiat's business model used to be ...<br />"We lose money on every car we sell, but we make up for it with volume."Shanghai61noreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-43950735480596095762014-12-12T05:36:03.483-08:002014-12-12T05:36:03.483-08:00http://a16z.com/2014/09/05/why-amazon-has-no-profi...http://a16z.com/2014/09/05/why-amazon-has-no-profits-and-why-it-works/David Hansonnoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-37028312630071660692014-12-11T08:38:59.467-08:002014-12-11T08:38:59.467-08:00The thinking is with Amazon and Uber ( and hence s...The thinking is with Amazon and Uber ( and hence sky high valuations) is that we're in a new world of economics and where network effects, economies of scale mean that monopolies can work and vast sums of money can be made like never before ( well apart from Apple, Microsoft, Standard Oil, Carnegie Steel ) <br /><br />The idea is that Uber and Amazon have enough money behind them to basically slowly win market share, and survive on no profits for years and years to come, they know profit won't be coming any time soon with this growth, this is why Uber "leaks" information to get ever more funding.<br /><br />It's based on the assumption, A F*CKING MASSIVE assumption, that one day Uber can buy or kill everyone else in P2P transport via undercutting, and Amazon can do the same online, and then they both have massive driver bases, user bases, servers, logistics algorithms and all that stuff that we don't ever come close to understanding, that means they can make fortunes off a monopoly in a market that nobody can ever try to enter because it's too damn scary to look at ( like Facebook or Google)<br /><br />It may be correct, but my hunch is that both companies are run by sociopaths, funded by sociopaths and a little bit of empathy and critical thinking would have show the errors in their ways. Not least Amazon is a pretty shitty company to buy stuff from and Uber is a wank brand.Tomnoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-46453689531906553282014-12-11T05:12:22.415-08:002014-12-11T05:12:22.415-08:00When the alternative is to go to WalMart, Amazon w...When the alternative is to go to WalMart, Amazon will win for me every time. I'm too old to go there. People might think I work there. If Amazon wants to charge ten cents more on everything I buy, that would amount to less than five dollars a year. And yes, I will pay that to avoid going to WalMart. Also, I highly doubt anyone would go elsewhere to save ten cents.Cecil B. DeMillenoreply@blogger.comtag:blogger.com,1999:blog-5249997465016074955.post-47483764096648665192014-12-11T00:34:13.727-08:002014-12-11T00:34:13.727-08:00Amazon product ads are stealing revenue from Googl...Amazon product ads are stealing revenue from Google. Ultimately, they will make more money from clicks than from sales, because everyone goes to Amazon looking for a bargain. Probably not their original business model (or even plan z) but pretty compelling, just the same.denTarthurdentnoreply@blogger.com