Link: Amazon move off Oracle caused Prime Day outage in warehouse

The outage, which lasted for hours on Prime Day, resulted in over 15,000 delayed packages and roughly $90,000 in wasted labor costs, according to the report. Those costs don’t include all the lost hours spent by engineers troubleshooting and fixing the errors or any potential lost sales.

I assume Amazon has, and will save much more than that by moving off Oracle.
Original source: Amazon move off Oracle caused Prime Day outage in warehouse

Link: Investors Have Misdiagnosed Amazon’s Push Into The Pharmacy Business

“The preponderance of drugs in the U.S. is consumed by an older population, whose habits change slowly or not at all. Accordingly, it’s likely that Amazon’s online pharmacy will not significantly impact the existing drug industry…. Here’s why: Americans currently spend $450 billion a year on drugs. Walmart is the fourth-largest pharmacy in the U.S., with sales of $21 billion, or 4.6% of the company’s total sales. Let’s say that over the next five years Amazon gets to Walmart’s sales level of $21 billion. If the U.S. pharmaceutical industry grows 2% a year over that time, total drug sales will have increased by $45 billion, or the equivalent of two Walmarts (we are ignoring compounding here), to $495 billion. Walgreens, with its pharmacy selling about $70 billion a year, would barely notice Amazon’s presence.”
Original source: Investors Have Misdiagnosed Amazon’s Push Into The Pharmacy Business

Link: Amazon takes aim at U.K. insurance market | Digital Insurance

‘Amazon has “all the tools to succeed” and is a bigger threat than Alphabet Inc.’s Google, which also made a play for the U.K. price-comparison industry a few years ago’

For the change or die files.
Original source: Amazon takes aim at U.K. insurance market | Digital Insurance

Link: This is the Amazon everyone should have feared — and it has nothing to do with its retail business

“the massive online retailer once again posted its largest quarterly profit in history — $2.5 billion for the quarter — on the back of two businesses that were afterthoughts just a few years ago: Amazon Web Services, its cloud computing unit, as well as its fast-growing advertising business.”

Good charts, too.
Original source: This is the Amazon everyone should have feared — and it has nothing to do with its retail business

Link: Amazon launches Part Finder, built by technology it acquired from Partpic in 2016

Machine learning is turning out to be more practical than apocalyptic.
Original source: Amazon launches Part Finder, built by technology it acquired from Partpic in 2016

Link: The Bezos-Buffett-Dimon health care venture: Eliminate the middlemen

“There’s ample room to replicate that success in health care, because the system in the U.S. has long been plagued by excessive transaction costs – the expenses incurred when buying or selling goods and services. These include irrational pricing, as evidenced by the price of services varying wildly for hospitals, insurers and patients. This, along with unnecessarily complicated billing systems, creates the need for extensive bureaucracies to manage all the varied relationships.”
Original source: The Bezos-Buffett-Dimon health care venture: Eliminate the middlemen

Link: How Tech Companies Conquered America’s Cities

“But what Uber lacked in political support it made up for in local popularity. Through its app, the company had a direct connection to thousands of riders and drivers who were making a living from its service.”
Original source: How Tech Companies Conquered America’s Cities

Link: Jeff Bezos admits Amazon has ‘the weirdest meeting culture you will ever encounter’, Business Insider

In the letter, he explained that writing a brilliant, long memo requires the writer to understand the subject well. It also requires the writer to “improve results through the simple act of teaching scope.” By that he means doing a great job requires effort, not speed. “A great memo probably should take a week or more” to write, he said in the letter.

“We read [the memos] in the room. Just like high school kids, executives will bluff their way through the meeting as if they’ve read the memo. So you have to carve out time so everyone has actually read the memo – they are not just pretending,” he said.
Original source: Jeff Bezos admits Amazon has ‘the weirdest meeting culture you will ever encounter’, Business Insider

Link: ‘Big Tech’ isn’t one big monopoly – it’s 5 companies all in different businesses

‘But despite simple perception of them all as “tech” companies, their core revenue sources are clearly different. And those distinctions suggest ways people can understand and respond to anxieties about their growing economic and cultural influence.’
Original source: ‘Big Tech’ isn’t one big monopoly – it’s 5 companies all in different businesses

Link: Amazon pushes further into insurance with its latest investment

“Amazon’s Indian venture is probably a springboard for a move towards more established markets. India is some way away from Amazon’s key US and European markets, suggesting that it’s using India as a test lab for expanding its insurance operations. However, Amazon’s decision to flex its insurance muscles in India is probably also down to the fact that Amazon has stronger competition in this market in the form of home-grown rival Flipkart — which has also begun stepping into insurance. In Europe and the US, meanwhile, Amazon has fewer real competitors. As such, it’s likely that if Amazon’s venture with Acko succeeds, we’ll see it striking similar partnerships closer to its core markets to bulk out its insurance presence there. If this were to happen, legacy insurers and smaller insurtechs would be up against some stiff competition.”
Original source: Amazon pushes further into insurance with its latest investment

Link: Amazon is coming for the insurance industry – should we be worried?

“While UK insurers are investing in tech and providing digital services, the majority are light years behind Amazon,” noted Davies. “If insurers are not careful, they may be pushed out of having a direct relationship with customers and be relegated to the role of a price-driven risk carrier at the back end (assuming Amazon doesn’t want to hold the risk too).”
Original source: Amazon is coming for the insurance industry – should we be worried?

Link: Uber Spent $10.7 Billion in Nine Years. Does It Have Enough to Show for It?

“Amazon.com Inc. is famous for its losses over the years. But even in the heyday of the dot-com bubble, the e-commerce giant never came close. Amazon’s biggest loss was in 2000—a $1.4 billion embarrassment, or about $2 billion adjusted for inflation. Most years, Amazon turns a profit, albeit a small one. What Uber backers can point to, though, is a nearly unmatched pace of sales growth. Even as Uber’s revenue reached $2.3 billion in the fourth quarter of 2017, its annual growth rate remained strong, at about 90 percent compared with 2016. That’s faster than most tech companies with a similar valuation. Only one U.S. tech company of Uber’s size, Micron, grew at anything close to that last year.”
Original source: Uber Spent $10.7 Billion in Nine Years. Does It Have Enough to Show for It?

Link: Ordering from voice tubes

“Purchases made through devices such as Google Home and Amazon’s Echo are projected to leap from $2 billion to $40 billion by 2022 as technology improves, U.S. consumers become more comfortable and the speakers become nearly as commonplace in homes as a flat-screen TV, according to a new study from OC&C Strategy Consultants.”

More:

“Shoppers are more apt to buy cheaper items, such as phone charger cables, via voice. The average online basket was $661 for online purchases of electronics, compared with $239 for voice orders, OC&C said. “
Original source: Ordering from voice tubes

Link: Federal Reserve chair says ‘Amazon effect’ could be responsible for low inflation

‘The “Amazon effect” refers to the decline in traditional retail employment despite expansion in the overall retail sector. That paradox is occurring because of the explosion of online retail, driven in part by Amazon. As online shopping becomes more efficient and widely-used, fewer traditional retail workers are needed. The Amazon theory purports that lower demand for retail labor keeps wages low and holds down the price of consumer goods. But economists are split on the extent to which this phenomenon actually impacts inflation.’
Original source: Federal Reserve chair says ‘Amazon effect’ could be responsible for low inflation

Link: Warren Buffett reveals more details about healthcare venture with JPMorgan and Amazon

“We have got a huge, competitive disadvantage in American businesses, far more important than any tax change, in terms of our healthcare costs.”
Original source: Warren Buffett reveals more details about healthcare venture with JPMorgan and Amazon

Link: Amazon, Berkshire Hathaway, JPMorgan form health care mega-company

‘There aren’t many, but the announcement says this new entity focuses on “technology solutions that will provide U.S. employees and their families with simplified, high-quality and transparent healthcare at a reasonable cost,” beginning with the companies’ own workers.’
Original source: Amazon, Berkshire Hathaway, JPMorgan form health care mega-company

Link: Amazon HQ2 blamed for high real-estate, rent, and traffic in Seattle

‘High demand and low inventory creates bidding wars and animosity among those who can’t even afford a starter home in the city they grew up in,” Kurt Schlosser wrote in September for GeekWire. “And the rent is too damn high, too. Workers who don’t wear tech badges for a living are forced to look outside the city and thus contend with the traffic coming in and out of it, creating a vicious cycle and affordability crisis.”’

Meanwhile: “The retailer says its Seattle headquarters has created 53,000 jobs in the city in addition to pumping a staggering $38 billion into the local economy.”
Original source: Amazon HQ2 blamed for high real-estate, rent, and traffic in Seattle