Amazon is trying to soften its image as regulatory scrutiny of Big Tech grows

But rather than fiercely fighting every battle, Amazon looks like its ready to play nice. In March, Amazon dropped a policy that prevented merchants from offering lower prices on other websites following an investigation request by Sen. Richard Blumenthal (D-Conn.). Last month, the company scaled back some of its most aggressive promotion tactics after Sen. Elizabeth Warren (D-Mass.) And late last year Amazon raised its minimum wage to $15 following criticism of the company’s working conditions


But rather than fiercely fighting every battle, Amazon looks like its ready to play nice. In March, Amazon dropped a policy that prevented merchants from offering lower prices on other websites following an investigation request by Sen. Richard Blumenthal (D-Conn.). Last month, the company scaled back some of its most aggressive promotion tactics after Sen. Elizabeth Warren (D-Mass.) And late last year Amazon raised its minimum wage to $15 following criticism of the company’s working conditions
Amazon is trying to soften its image as regulatory scrutiny of Big Tech grows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-14  Authors: eugene kim, brent lewis, denver post, getty images, david ryder
Keywords: news, cnbc, companies, big, growing, tech, soften, sen, stores, scrutiny, amazon, trying, business, winatallcost, regulatory, image, following, working, looks, grows, company


Amazon is trying to soften its image as regulatory scrutiny of Big Tech grows

Amazon’s relentless pursuit of growth in retail, cloud computing, advertising and consumer devices has put the company squarely in the sights of Washington lawmakers who are concerned about Big Tech’s growing influence over consumers. But rather than fiercely fighting every battle, Amazon looks like its ready to play nice.

In March, Amazon dropped a policy that prevented merchants from offering lower prices on other websites following an investigation request by Sen. Richard Blumenthal (D-Conn.). Last month, the company scaled back some of its most aggressive promotion tactics after Sen. Elizabeth Warren (D-Mass.) called out abusive business practices. And late last year Amazon raised its minimum wage to $15 following criticism of the company’s working conditions by Sen. Bernie Sanders (D-VT).

Amazon also confirmed to CNBC that it would soon start accepting cash at the Amazon Go cashierless stores as a growing number of cities and states push for laws that require all stores to serve the unbanked. It’s all part of a strategy to be more likable at a time when tech companies are drawing heat for behavior that looks increasingly anti-competitive.

“I believe Amazon has made the connection between likability and immunity from regulation,” said NYU business professor Scott Galloway, author of “The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google.”

This is a different company from the vigorously defensive, win-at-all-cost Amazon we’re used to seeing.


Company: cnbc, Activity: cnbc, Date: 2019-04-14  Authors: eugene kim, brent lewis, denver post, getty images, david ryder
Keywords: news, cnbc, companies, big, growing, tech, soften, sen, stores, scrutiny, amazon, trying, business, winatallcost, regulatory, image, following, working, looks, grows, company


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Amazon exec tells employees that Go stores will start accepting cash

Amazon Go stores, which let customers buy items without waiting in checkout lines, will start accepting cash, amid intensifying criticism that the company is discriminating against the unbanked. In an internal all-hands meeting last month, Steve Kessel, Amazon’s senior vice president of physical stores, told employees that the company plans “additional payment mechanisms” at its Go stores. Kessel was responding to a question about how Amazon plans to address “discrimination and elitism” at the c


Amazon Go stores, which let customers buy items without waiting in checkout lines, will start accepting cash, amid intensifying criticism that the company is discriminating against the unbanked. In an internal all-hands meeting last month, Steve Kessel, Amazon’s senior vice president of physical stores, told employees that the company plans “additional payment mechanisms” at its Go stores. Kessel was responding to a question about how Amazon plans to address “discrimination and elitism” at the c
Amazon exec tells employees that Go stores will start accepting cash Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-10  Authors: eugene kim, stephen brashear, getty images
Keywords: news, cnbc, companies, company, amazon, methods, start, cash, tells, employees, kessel, exec, meeting, accepting, payment, plans, stores, waiting


Amazon exec tells employees that Go stores will start accepting cash

Amazon Go stores, which let customers buy items without waiting in checkout lines, will start accepting cash, amid intensifying criticism that the company is discriminating against the unbanked.

In an internal all-hands meeting last month, Steve Kessel, Amazon’s senior vice president of physical stores, told employees that the company plans “additional payment mechanisms” at its Go stores. Kessel was responding to a question about how Amazon plans to address “discrimination and elitism” at the cashierless stores, which charge purchases using an app connected to a bank or credit card.

Kessel highlighted some of the new payment methods Amazon has recently added to its site, including a pilot that accepts government subsidized SNAP benefits and a new program called Amazon Cash, which lets users add cash to their digital accounts by bringing money to a local store like 7-Eleven or CVS.

“We’re in earlier days but it’s an important focus for us and we’ll continue to extend those methods with our stores,” Kessel said at the meeting, a recording of which was heard by CNBC. Kessel didn’t provide a time frame for the changes or specifically say what the company will do.


Company: cnbc, Activity: cnbc, Date: 2019-04-10  Authors: eugene kim, stephen brashear, getty images
Keywords: news, cnbc, companies, company, amazon, methods, start, cash, tells, employees, kessel, exec, meeting, accepting, payment, plans, stores, waiting


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Amazon exec tells employees that Go stores will start accepting cash

Amazon Go stores, which let customers buy items without waiting in checkout lines, will start accepting cash, amid intensifying criticism that the company is discriminating against the unbanked. In an internal all-hands meeting last month, Steve Kessel, Amazon’s senior vice president of physical stores, told employees that the company plans “additional payment mechanisms” at its Go stores. Kessel was responding to a question about how Amazon plans to address “discrimination and elitism” at the c


Amazon Go stores, which let customers buy items without waiting in checkout lines, will start accepting cash, amid intensifying criticism that the company is discriminating against the unbanked. In an internal all-hands meeting last month, Steve Kessel, Amazon’s senior vice president of physical stores, told employees that the company plans “additional payment mechanisms” at its Go stores. Kessel was responding to a question about how Amazon plans to address “discrimination and elitism” at the c
Amazon exec tells employees that Go stores will start accepting cash Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-10  Authors: eugene kim, stephen brashear, getty images
Keywords: news, cnbc, companies, tells, methods, cash, payment, plans, amazon, employees, accepting, start, stores, exec, meeting, company, kessel, waiting


Amazon exec tells employees that Go stores will start accepting cash

Amazon Go stores, which let customers buy items without waiting in checkout lines, will start accepting cash, amid intensifying criticism that the company is discriminating against the unbanked.

In an internal all-hands meeting last month, Steve Kessel, Amazon’s senior vice president of physical stores, told employees that the company plans “additional payment mechanisms” at its Go stores. Kessel was responding to a question about how Amazon plans to address “discrimination and elitism” at the cashierless stores, which charge purchases using an app connected to a bank or credit card.

Kessel highlighted some of the new payment methods Amazon has recently added to its site, including a pilot that accepts government subsidized SNAP benefits and a new program called Amazon Cash, which lets users add cash to their digital accounts by bringing money to a local store like 7-Eleven or CVS.

“We’re in earlier days but it’s an important focus for us and we’ll continue to extend those methods with our stores,” Kessel said at the meeting, a recording of which was heard by CNBC. Kessel didn’t provide a time frame for the changes or specifically say what the company will do.


Company: cnbc, Activity: cnbc, Date: 2019-04-10  Authors: eugene kim, stephen brashear, getty images
Keywords: news, cnbc, companies, tells, methods, cash, payment, plans, amazon, employees, accepting, start, stores, exec, meeting, company, kessel, waiting


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Zoom key profit driver ahead of IPO: engineers in China

Zoom disclosed in its IPO prospectus last week that most of its product development personnel are based in China. “Our product development team is largely based in China, where personnel costs are less expensive than in many other jurisdictions,” Zoom wrote in its filing. “If we had to relocate our product development team from China to another jurisdiction, we could experience, among other things, higher operating expenses, which would adversely impact our operating margins and harm our busines


Zoom disclosed in its IPO prospectus last week that most of its product development personnel are based in China. “Our product development team is largely based in China, where personnel costs are less expensive than in many other jurisdictions,” Zoom wrote in its filing. “If we had to relocate our product development team from China to another jurisdiction, we could experience, among other things, higher operating expenses, which would adversely impact our operating margins and harm our busines
Zoom key profit driver ahead of IPO: engineers in China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-26  Authors: eugene kim, courtesy of zoom video communications
Keywords: news, cnbc, companies, china, team, million, development, software, ahead, ipo, profit, product, revenue, key, zoom, tech, driver, rd, engineers


Zoom key profit driver ahead of IPO: engineers in China

Unlike most tech companies preparing to go public, video-conferencing startup Zoom is profitable. One key driver of Zoom’s profitability: a large engineering team in China, where average tech salary is relatively lower than in the U.S.

Zoom’s large R&D presence in China, which is likely made easier by CEO Eric Yuan’s Chinese background, is turning out to be a major cost saver for the video-conference software maker — and reflects an increasingly popular strategy among fast-growth tech companies.

Zoom disclosed in its IPO prospectus last week that most of its product development personnel are based in China. Zoom employs over 500 people across multiple R&D centers in China, which accounts for roughly 30 percent of its total workforce and 70 percent of its non-US-based employees, according to the prospectus.

“Our product development team is largely based in China, where personnel costs are less expensive than in many other jurisdictions,” Zoom wrote in its filing. “If we had to relocate our product development team from China to another jurisdiction, we could experience, among other things, higher operating expenses, which would adversely impact our operating margins and harm our business.”

In the fiscal year that ended Jan. 31, Zoom spent $33 million on R&D, or just 10 percent of total revenue. That’s a much smaller share than other business software makers, and less than half the median R&D percentage of its peer group, according to Redpoint Ventures’ Tomasz Tunguz. For example, Atlassian’s development cost accounted for over 40 percent of its revenue, while smaller companies like Zendesk and Hubspot both spent over 20 percent of their revenues on R&D.

That helped Zoom record a net income of $7.6 million last year, even after spending more than half of its revenue on sales and marketing, like many young business software companies. Its revenue more than doubled to $330.5 million in the same period.

“One key driver of profitability is labor-market arbitrage,” Tunguz wrote in a blog post about Zoom’s financials.

Zoom’s representative didn’t immediately respond to a request for comment.


Company: cnbc, Activity: cnbc, Date: 2019-03-26  Authors: eugene kim, courtesy of zoom video communications
Keywords: news, cnbc, companies, china, team, million, development, software, ahead, ipo, profit, product, revenue, key, zoom, tech, driver, rd, engineers


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

As Brexit stumbles, Salesforce and other tech companies warn of possible fallout

Salesforce is part of a growing number of tech companies addressing the potential impact of Brexit, a move that could add significant uncertainty to businesses in Europe. In the past three months, 93 earnings calls of the S&P 500 companies addressed Brexit and its potential impact, according to FactSet. While most companies were cautious with their answers, sharing very little detail, some companies were more upfront about it. It’s unclear why Salesforce decided to share more details about Brexi


Salesforce is part of a growing number of tech companies addressing the potential impact of Brexit, a move that could add significant uncertainty to businesses in Europe. In the past three months, 93 earnings calls of the S&P 500 companies addressed Brexit and its potential impact, according to FactSet. While most companies were cautious with their answers, sharing very little detail, some companies were more upfront about it. It’s unclear why Salesforce decided to share more details about Brexi
As Brexit stumbles, Salesforce and other tech companies warn of possible fallout Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-14  Authors: eugene kim, adam galica
Keywords: news, cnbc, companies, stumbles, salesforce, warn, tech, hes, significant, uk, ceo, fallout, cisco, companies, brexit, potential, possible, impact


As Brexit stumbles, Salesforce and other tech companies warn of possible fallout

Salesforce is part of a growing number of tech companies addressing the potential impact of Brexit, a move that could add significant uncertainty to businesses in Europe. Although British lawmakers are once again expected to vote to delay Brexit, which is scheduled for later this month, more investors are asking about its future risk.

In the past three months, 93 earnings calls of the S&P 500 companies addressed Brexit and its potential impact, according to FactSet. Among those are some of the largest companies, including Facebook, Cisco and Walmart.

While most companies were cautious with their answers, sharing very little detail, some companies were more upfront about it.

Expedia, for example, said it’s seen a drop-off in U.K flight bookings due to “uncertainty around Brexit.” Booking Holdings, the owner of a group of travel sites including Priceline.com, also said Brexit is creating a “tremendous amount of uncertainty.”

Facebook’s CFO David Wehner also said during January’s earnings call that macroeconomic concerns, like Brexit, are a “risk on top of other issues” facing the company.

Other companies tried to play down Brexit’s effect on its business. HPE CEO Antonio Neri said demand was “very steady” throughout the quarter, highlighting double-digit sales growth in the U.K. Walmart’s CEO Doug McMillon said he’s “impressed” with his U.K. team’s performance, while Cisco CEO Chuck Robbins said he’s been “amazed at the resilience” he’s seen from employees around the world.

It’s unclear why Salesforce decided to share more details about Brexit’s potential impact. The company generates less 20 percent of revenue from the European region, a smaller share than companies like Facebook or Cisco, who get about a quarter of their sales from Europe. Salesforce’s representative wasn’t immediately available for comment.

Still, Salesforce said it’s already “evaluated and started to implement initiatives,” as it sees “significant uncertainties” arising from Brexit’s outcome.

“We recognize that there are still significant uncertainties surrounding the ultimate resolution of Brexit negotiations, and we will continue to monitor any changes that may arise and assess their potential impact on our business,” Salesforce said in the filing.

WATCH: UK parliament approves motion seeking delay of Brexit


Company: cnbc, Activity: cnbc, Date: 2019-03-14  Authors: eugene kim, adam galica
Keywords: news, cnbc, companies, stumbles, salesforce, warn, tech, hes, significant, uk, ceo, fallout, cisco, companies, brexit, potential, possible, impact


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Bezos responds to employee concerns about his personal life

Amazon CEO Jeff Bezos, to say the least, is having a rough start to the year. That was Bezos’ message during Amazon’s internal all-hands staff meeting last week, when an employee asked the CEO if any significant changes are expected because of everything that’s happened to him over the last two months. Bezos is currently facing an impending divorce, a tabloid scandal and a publicity nightmare stemming from HQ2’s pullout from New York, among many other things. “If you don’t mind, just raise your


Amazon CEO Jeff Bezos, to say the least, is having a rough start to the year. That was Bezos’ message during Amazon’s internal all-hands staff meeting last week, when an employee asked the CEO if any significant changes are expected because of everything that’s happened to him over the last two months. Bezos is currently facing an impending divorce, a tabloid scandal and a publicity nightmare stemming from HQ2’s pullout from New York, among many other things. “If you don’t mind, just raise your
Bezos responds to employee concerns about his personal life Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-11  Authors: eugene kim, joshua roberts file photo
Keywords: news, cnbc, companies, concerns, life, personal, running, thats, responds, amazon, meeting, employee, hes, governance, start, work, bezos, maybe


Bezos responds to employee concerns about his personal life

Amazon CEO Jeff Bezos, to say the least, is having a rough start to the year. But don’t expect him to lose focus.

That was Bezos’ message during Amazon’s internal all-hands staff meeting last week, when an employee asked the CEO if any significant changes are expected because of everything that’s happened to him over the last two months. Bezos is currently facing an impending divorce, a tabloid scandal and a publicity nightmare stemming from HQ2’s pullout from New York, among many other things.

“If you don’t mind, just raise your hand, if maybe — just maybe — you’ve had a better start to your 2019 than I have. Anybody?” Bezos said, according to a recording of the meeting CNBC has heard. “I noticed that a couple hands didn’t come up — I’m sorry for you guys.”

Bezos went on to reassure the employees that he has no plans to step back and is still fully engaged with the day-to-day management of the company. He said:

“But seriously, no. I am as engaged and focused on Amazon as ever. I still tap dance into the office. I get to work with remarkable people. I get to live and work in the future. And that’s where I like to be, so thank you.”

It was Bezos’ first public comment to employees addressing the concerns about his work at Amazon as he’s dealing with a series of issues — both personally and professionally — that could potentially distract him from running one of the largest companies in the world. While the comments reaffirm his commitment to work, questions remain on how exactly Bezos will get through one of the toughest periods of his career, corporate governance experts say.

“Given the stress he’s under, I would think it’d be rather difficult to continue running the company in a normal fashion,” said Charles Elson, a professor and director of the corporate governance center at the University of Delaware.

Amazon declined to comment.


Company: cnbc, Activity: cnbc, Date: 2019-03-11  Authors: eugene kim, joshua roberts file photo
Keywords: news, cnbc, companies, concerns, life, personal, running, thats, responds, amazon, meeting, employee, hes, governance, start, work, bezos, maybe


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Amazon continues its push into the pharmacy business, and has appointed a 14-year vet to run it

Amazon has tapped 14-year company veteran Nader Kabbani to run its new pharmacy business, including the team that came in through last year’s acquisition of PillPack, CNBC has learned. The entire team at PillPack, which Amazon bought for more than $800 million in June 2018, reports directly to Kabbani, the document says. He was in charge of Amazon Flex, the company’s program that hires individuals to make deliveries on a flexible schedule, as well as other aspects of Amazon’s last-mile delivery


Amazon has tapped 14-year company veteran Nader Kabbani to run its new pharmacy business, including the team that came in through last year’s acquisition of PillPack, CNBC has learned. The entire team at PillPack, which Amazon bought for more than $800 million in June 2018, reports directly to Kabbani, the document says. He was in charge of Amazon Flex, the company’s program that hires individuals to make deliveries on a flexible schedule, as well as other aspects of Amazon’s last-mile delivery
Amazon continues its push into the pharmacy business, and has appointed a 14-year vet to run it Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-27  Authors: christina farr, eugene kim, getty images, source
Keywords: news, cnbc, companies, billion, pharmacy, president, pillpack, appointed, flex, run, amazons, continues, 14year, health, vet, push, business, team, vice, amazon


Amazon continues its push into the pharmacy business, and has appointed a 14-year vet to run it

Amazon has tapped 14-year company veteran Nader Kabbani to run its new pharmacy business, including the team that came in through last year’s acquisition of PillPack, CNBC has learned.

Kabbani, who helped build Amazon’s Kindle self-publishing platform and has served as vice president in the logistics and Flex businesses, is now “vice president of consumables, special projects,” according to an internal document that was viewed by CNBC.

The entire team at PillPack, which Amazon bought for more than $800 million in June 2018, reports directly to Kabbani, the document says. That includes CEO TJ Parker, product chief Elliot Cohen and technology head Alan Gao.

Amazon declined to comment.

The pharmacy business has huge potential for Amazon. In the U.S., more than 4 billion prescriptions are ordered annually, and spending is expected to top $600 billion in the next few years, much of that covered by insurers and Medicare and Medicaid. With PillPack, Amazon is poised to take a slice of the growing home delivery market, though it could also potentially incorporate retail pharmacy offerings at Whole Foods locations, after buying the upscale grocery chain for more than $13 billion in 2017.

Kabbani’s appointment shows Amazon is putting one of its most ambitious new projects in the hands of a trusted company executive with plenty of experience in supply chain and logistics, but no background in pharmaceuticals or health care. He was in charge of Amazon Flex, the company’s program that hires individuals to make deliveries on a flexible schedule, as well as other aspects of Amazon’s last-mile delivery strategy. His LinkedIn page has him listed as the vice president of Flex since March 2017.

The pharmacy and distribution industries have been watching Amazon’s every move.

Following the announced acquisition of PillPack, shares of drug distributors and pharmacies plummeted, with Walgreens Boots Alliance plunging 9.9 percent and McKesson dropping 6.1 percent. CVS Health, Cardinal Health, AmerisourceBergen and Rite Aid also fell on concern that Amazon would eat into their markets. Pharmacy is a notoriously challenging sector, given the dominance of brick-and-mortar incumbents and the middlemen that negotiate drug prices and manage their distribution.


Company: cnbc, Activity: cnbc, Date: 2019-02-27  Authors: christina farr, eugene kim, getty images, source
Keywords: news, cnbc, companies, billion, pharmacy, president, pillpack, appointed, flex, run, amazons, continues, 14year, health, vet, push, business, team, vice, amazon


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Amazon names former Pepsi CEO Indra Nooyi as new board member

Amazon announced on Thursday that former Pepsi CEO Indra Nooyi has been named to the company’s board of directors. Nooyi becomes the fifth female member of Amazon’s 11-person board, following the appointment of Starbucks COO Rosalind Brewer as a board member earlier this month. Last year, Amazon pledged to include women and minority candidates in its board search, following shareholder complaints about the company’s lack of diversity. Nooyi served as Pepsi CEO from 2006 to 2018, and remained cha


Amazon announced on Thursday that former Pepsi CEO Indra Nooyi has been named to the company’s board of directors. Nooyi becomes the fifth female member of Amazon’s 11-person board, following the appointment of Starbucks COO Rosalind Brewer as a board member earlier this month. Last year, Amazon pledged to include women and minority candidates in its board search, following shareholder complaints about the company’s lack of diversity. Nooyi served as Pepsi CEO from 2006 to 2018, and remained cha
Amazon names former Pepsi CEO Indra Nooyi as new board member Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-25  Authors: eugene kim, adam jeffery
Keywords: news, cnbc, companies, amazon, shares, indra, names, pepsi, following, board, member, companys, nooyi, coo, ceo


Amazon names former Pepsi CEO Indra Nooyi as new board member

Amazon announced on Thursday that former Pepsi CEO Indra Nooyi has been named to the company’s board of directors. She will also join the Audit Committee of the Board, according to the company’s regulatory filing.

Nooyi becomes the fifth female member of Amazon’s 11-person board, following the appointment of Starbucks COO Rosalind Brewer as a board member earlier this month.

Last year, Amazon pledged to include women and minority candidates in its board search, following shareholder complaints about the company’s lack of diversity.

Nooyi served as Pepsi CEO from 2006 to 2018, and remained chairman until she stepped down from that role on Feb. 1.

Nooyi was awarded 549 shares of common stock as part of her appointment, which will vest in three equal annual installments beginning on May 15, 2020. Amazon shares closed at $1,633 per share on Monday.

Here’s the full list of Amazon’s board of directors:

Jeff Bezos (Amazon CEO and Chairman)

Tom Alberg (Founder of Madrona Venture Group)

Rosalind Brewer (COO of Starbucks)

Jamie Gorelick (Former U.S. Deputy Attorney General and vice chair of Fannie Mae)

Daniel Huttenlocher (Founding Dean of Cornell Tech)

Judith McGrath (Former CEO of MTV Networks)

Jonathan Rubinstein (Former Apple executive and Palm CEO)

Thomas Ryder (Former CEO of The Reader’s Digest Association)

Patricia Stonesifer (CEO of Martha’s Table)

Wendell Weeks (CEO of Corning)

Indra Nooyi (Former CEO of Pepsi)

WATCH:Jeff Bezos is so much bigger than Amazon — a look at his extraordinary empire


Company: cnbc, Activity: cnbc, Date: 2019-02-25  Authors: eugene kim, adam jeffery
Keywords: news, cnbc, companies, amazon, shares, indra, names, pepsi, following, board, member, companys, nooyi, coo, ceo


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post