Re:SpaceX Is Now One of the World’s Most Valuable Privately ...
by fastball on Friday July 28, 2017 @05:23AM
(#14873015)
That's more Uber than Amazon.
Amazon didn't turn a profit for years because they were heavily reinvesting in more/better infrastructure (their "fulfillment centers") and services. One of the biggest services out of this reinvestment is AWS, which AMZN built for AMZN, and then realized it was such a good product they started selling it to others (also part of Bezos' ethos and their large initial costs: if you can't sell your internal tools to other people, you shouldn't be using it)
However, Amazon is making a profit these days, and is still growing, so I think it's sustainable.
Uber, meanwhile, is/has been subsidizing many/most rides with VC money in order to get market share, which is an entirely different thing and more in line with your perception.
Amazon didn't turn a profit for years because they were heavily reinvesting in more/better infrastructure (their "fulfillment centers") and services. One of the biggest services out of this reinvestment is AWS, which AMZN built for AMZN, and then realized it was such a good product they started selling it to others (also part of Bezos' ethos and their large initial costs: if you can't sell your internal tools to other people, you shouldn't be using it)
However, Amazon is making a profit these days, and is still growing, so I think it's sustainable.
Uber, meanwhile, is/has been subsidizing many/most rides with VC money in order to get market share, which is an entirely different thing and more in line with your perception.