In an article on New York Times, Farhad Manjoo said that Amazon.com, Inc. (NASDAQ:AMZN) is in deep trouble because of its Fire smartphone and the upheaval in the e-commerce business. Amazon.com, Inc. (NASDAQ:AMZN) relationship with publishers is not going in the right direction. The company was tracking things for granted when the major publishers started a resistance against it. Manjoo also thinks that Amazon.com, Inc. (NASDAQ:AMZN) CEO is unable to comprehend the importance and market of smartphones. The Fire phone from Amazon didn’t work well.
But there is an even scarier threat to Amazon.com, Inc. (NASDAQ:AMZN): a startup named Postmates has started logistics service for small and large stores in order to facilitate them to deliver items. The article quoted cofounder of Postmates, who said that everything his company is doing is anti-Amazon. This bold statement depicts that how much alignment is against Amazon.com, Inc. (NASDAQ:AMZN) in the US. Amazon is already facing huge problems in the physical stores business.
San Francisco Bay area is becoming a breeding ground for some interesting startups which will culminate into a major threat for Amazon.com, Inc. (NASDAQ:AMZN) in the coming years. The source mentioned a startup called Instacart, which enables the users to get same day deliveries. Google express delivery service also lets people get same day deliveries in big boxes.
Manjoo thinks that although these startups don’t pose an immediate threat to Amazon, they can certainly challenge the e-commerce juggernaut in the future because they are growing at an exponential speed. Instacart revenue is around $100 million for 2014, 10 times great than the last year.
Ken Fisher’s Fisher Asset Management owns over 2.4 million shares in Amazon.com, Inc. (NASDAQ:AMZN).