When Will Amazon Be Subject To The Law of Gravity?

Full speed ahead with drone delivery program, but can an individually delivered product via drone generate mass cost benefits similar to bulk delivery of the post office or UPS?

In his recent letter to investors, Bezos discusses a number of cutting edge improvements to the company – but very rarely engages in a discussion of cost relative to benefits. Those pesky profit considerations and unpleasant math isn’t required in the tech world, apparently.

Long on talk of Amazon’s innovation, short on cost/benefit analysis
The letter, where Bezos pontificates regarding every aspect of his growing number of innovations, doesn’t address deep cost / profit analysis. The closest he comes in a light version of traditional P&L analysis is when he addresses the value of his Prime members, but again not addressing the cost. “On a per customer basis, Prime members are ordering more items, across more categories, than ever before,” he wrote, while not addressing the bottom line impact of the well publicized increase in cost of the prime membership from $79 to $99. … (Read more)

Source: ValueWalk.com

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