Amazon Unbound

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Amazon Unbound Page 47

by Brad Stone


  That May, he was trailed by paparazzi: Chris Spargo, “No Delivery Drones Needed: Amazon Founder Jeff Bezos Flashes His $81bn Smile While Canoodling with His Wife During Some Real-World Shopping at Historic Italian Market,” Daily Mail, May 11, 2017, https://www.dailymail.co.uk/news/article-4497398/Amazon-founder-Jeff-Bezos-vacations-Italy.html (January 24, 2021).

  tweeting “a request for ideas”: Nick Wingfield, “Jeff Bezos Wants Ideas for Philanthropy, So He Asked Twitter,” New York Times, June 15, 2017, https://www.nytimes.com/2017/06/15/technology/jeff-bezos-amazon-twitter-charity.html (January 24, 2021).

  In July, he was photographed: Ian Servantes, “Amazon CEO Jeff Bezos Is Now Buff; Internet Freaks Out,” Men’s Health, July 17, 2017, https://www.menshealth.com/trending-news/a19525957/amazon-jeff-bezos-buff-memes/ (January 24, 2021).

  He talked about two hypothetical: Michael Learmonth, “Advertising Becomes Amazon’s Newest Low-Price Weapon,” Ad Age, October 8, 2012, https://adage.com/article/digital/advertising-amazon-s-newest-low-price-weapon/237630 (January 24, 2012).

  No, advertisers couldn’t make: Steve Susi, Brand Currency: A Former Amazon Exec on Money, Information, Loyalty, and Time (Lioncrest Publishing, 2019), and interview with the author.

  Its meaning was ambiguous: David Carnoy, “How Is ‘Amazon’s Choice’ Chosen? Amazon Won’t Say,” CNET, March 21, 2018, https://www.cnet.com/news/do-humans-choose-what-products-get-amazons-choice/ (January 24, 2021).

  Customers nevertheless flocked: Monica Nickelsburg, “US Lawmakers Raise Questions About ‘Misleading’ Amazon’s Choice Recommendations,” GeekWire, August 12, 2019, https://www.geekwire.com/2019/us-lawmakers-raise-questions-misleading-amazons-choice-recommendations/ (January 24, 2021).

  A Wall Street Journal story in 2019 about Amazon’s Choice: Shane Shifflett, Alexandra Berzon, and Dana Mattioli, “ ‘Amazon’s Choice’ Isn’t the Endorsement It Appears,” Wall Street Journal, December 22, 2019, https://www.wsj.com/articles/amazons-choice-isnt-the-endorsement-it-appears-11577035151 (January 24, 2021).

  In some product categories, only two: Juozas Kaziukėnas, “Amazon Demotes Organic Results in Search,” Marketplace Pulse, October 30, 2019, https://www.marketplacepulse.com/articles/amazon-search-demotes-organic-results (January 24, 2021).

  A bipartisan report by the U.S. House: “Investigation of Competition in Digital Markets: Majority Staff Reports and Recommendations,” 2020, https://judiciary.house.gov/uploadedfiles/competition_in_digital_markets.pdf (January 24, 2021).

  Amazon did something rare in its history: Andy Malt, “Amazon Tickets to Close,” Amazon blog, February 22, 2018, https://completemusicupdate.com/article/amazon-tickets-to-close/ (January 25, 2021).

  It also cut the investment in its beleaguered: “Amazon Is Preparing to Close a Chinese E-Commerce Store,” Bloomberg, April 17, 2019, https://www.bloomberg.com/news/articles/2019-04-17/amazon-is-said-to-prepare-closing-of-chinese-e-commerce-store?sref=dJuchiL5 (January 25, 2021).

  The company slowed down the introduction: Mike Rosenberg and Angel González, “Thanks to Amazon, Seattle Is Now America’s Biggest Company Town,” Seattle Times, August 23, 2017, https://www.seattletimes.com/business/amazon/thanks-to-amazon-seattle-is-now-americas-biggest-company-town/ (January 25, 2021).

  Retail executives were ordered: Laura Stevens, Sharon Terlep, and Annie Gasparro, “Amazon Targets Unprofitable Items, with a Sharper Focus on the Bottom Line,” Wall Street Journal, December 16, 2018, https://www.wsj.com/articles/amazon-targets-unprofitable-items-with-a-sharper-focus-on-the-bottom-line-11544965201 (January 25, 2021).

  The ongoing “hands off the wheel initiative”: Spencer Soper, “Amazon’s Clever Machines Are Moving from the Warehouse to Headquarters,” Bloomberg, June 13, 2018, https://www.bloomberg.com/news/articles/2018-06-13/amazon-s-clever-machines-are-moving-from-the-warehouse-to-headquarters?sref=dJuchiL5 (January 25, 2021).

  “He’s doing that all the time, of course”: Staci D. Kramer, “The Biggest Thing Amazon Got Right: The Platform,” Gigaom, October 12, 2011, https://gigaom.com/2011/10/12/419-the-biggest-thing-amazon-got-right-the-platform/ (January 25, 2021).

  At the same time as he issued the directive: Bain & Company, “Founder’s Mentality‚SM and the Paths to Sustainable Growth,” YouTube, September 10, 2014, https://www.youtube.com/watch?v=Rp4RCIfX66I (January 25, 2021).

  And in the fall of 2017, Jeff Bezos finally: Tom Metcalf, “Jeff Bezos Passes Bill Gates to Become the World’s Richest Person,” Bloomberg, October 27, 2017, https://www.bloomberg.com/news/articles/2017-10-27/bezos-seizes-title-of-world-s-richest-person-after-amazon-soars (January 25, 2021).

  CHAPTER 11: GRADATIM FEROCITER

  Two books were valuable resources for this chapter: Christian Davenport, The Space Barons: Elon Musk, Jeff Bezos, and the Quest to Colonize the Cosmos (New York: PublicAffairs, 2018), and Tim Fernholz, Rocket Billionaires: Elon Musk, Jeff Bezos, and the New Space Race (New York: Houghton Mifflin Harcourt, 2018).

  the firm landed a Falcon 9 booster: Loren Grush, “SpaceX Successfully Lands Its Rocket on a Floating Drone Ship for the First Time,” The Verge, April 8, 2016, https://www.theverge.com/2016/4/8/11392138/spacex-landing-success-falcon-9-rocket-barge-at-sea (January 24, 2021).

  “a club more than a company”: Steven Levy, “Jeff Bezos Wants Us All to Leave Earth—for Good,” Wired, October 15, 2018, https://www.wired.com/story/jeff-bezos-blue-origin/ (January 24, 2021).

  Residents of the town of Van Horn: Clare O’Connor, “Jeff Bezos’ Spacecraft Blows Up in Secret Test Flight; Locals Describe ‘Challenger-Like’ Explosion,” Forbes, September 2, 2011, https://www.forbes.com/sites/clareoconnor/2011/09/02/jeff-bezos-spacecraft-blows-up-in-secret-test-flight-locals-describe-challenger-like-explosion/?sh=6cde347836c2 (January 24, 2021).

  “Not the outcome any of us wanted”: Jeff Bezos, “Successful Short Hop, Setback, and Next Vehicle,” Blue Origin, September 2, 2011, https://www.blueorigin.com/news/successful-short-hop-setback-and-next-vehicle (January 24, 2021).

  SpaceX won the contract: Jeff Fouse, “NASA Selects Boeing and SpaceX for Commercial Crew Contracts,” SpaceNews, September 16, 2014, https://spacenews.com/41891nasa-selects-boeing-and-spacex-for-commercial-crew-contracts/ (January 24, 2021).

  $7.7 billion for the project: Nasa Office of Inspector General, “Audit of Commercial Resupply Services to the International Space Station,” Report No. IG-18-016, April 26, 2018, pg. 4, https://oig.nasa.gov/docs/IG-18-016.pdf (January 24, 2021).

  sending unmanned spacecraft: Jonathan Amos, “SpaceX Lifts Off with ISS cargo,” BBC, October 8, 2012, https://www.bbc.com/news/science-environment-19867358 (January 24, 2021).

  “multi-planetary species”: Elon Musk, “Making Humans a Multi-Planetary Species,” Mary Ann Liebert, Inc, New Space 5 no. 2 (2017): 46, https://www.liebertpub.com/doi/10.1089/space.2017.29009.emu (January 24, 2021).

  “We go to space to save the Earth”: Jeff Bezos, Tweet, February 3, 2018, 9:30 a.m., https://twitter.com/jeffbezos/status/959796196247142400?lang=en (January 24, 2021).

  Blue Origin protested SpaceX’s plan: Alan Boyle, “Bezos’ Blue Origin Space Venture Loses Protest over NASA’s Launch Pad,” NBC News, December 12, 2013, https://www.nbcnews.com/science/bezos-blue-origin-rocket-venture-fails-stop-nasas-launch-pad-2D11736708 (January 24, 2021).

  “We are more likely to discover unicorns”: Dan Leone, “Musk Calls Out Blue Origin, ULA for ‘Phony Blocking Tactic’ on Shuttle Pad Lease,” SpaceNews, September 25, 2013, https://spacenews.com/37389musk-calls-out-blue-origin-ula-for-phony-blocking-tactic-on-shuttle-pad/ (January 24, 2021).

  SpaceX challenged the patent: Todd Bishop, “Jeff Bezos’ Blue Origin Dealt Setback in Patent Dispute with SpaceX over Rocket Landings,” GeekWire, March 5, 2015, https://www.geekwire.com/2015/jeff-bezos-blue-origin-dealt-setback-in-patent-dispute-with-spacex-over-rocket-landings/ (January 24, 2021); Todd Bishop, “Blue Origin’s Rocket-Landing Patent Canceled in Victory for SpaceX,” GeekWire, September 1, 2015, https://www.ge
ekwire.com/2015/blue-origins-rocket-landing-patent-canceled-in-victory-for-spacex/ (January 24, 2021).

  the United Launch Alliance (ULA): Armin Rosen, “Elon Musk’s Aerospace Argument Just Took a Hit,” Business Insider, June 17, 2014, https://www.businessinsider.com/ula-wont-buy-rocket-engines-from-russia-anymore-2014-6 (January 24, 2021).

  landed its own reusable booster: Loren Grush, “Spacex Successfully Landed Its Falcon 9 Rocket After Launching It to Space,” The Verge, December 21, 2015, https://www.theverge.com/2015/12/21/10640306/spacex-elon-musk-rocket-landing-success (January 24, 2021).

  Bezos tweeted: Jeff Bezos, Tweet, December 21, 2015, 8:49 p.m., https://twitter.com/jeffbezos/status/679116636310360067?lang=en (January 24, 2021).

  300,000-square-foot former factory: Eric Berger, “Behind the Curtain: Ars Goes Inside Blue Origin’s Secretive Rocket Factory,” Ars Technica, March 9, 2016, https://arstechnica.com/science/2016/03/behind-the-curtain-ars-goes-inside-blue-origins-secretive-rocket-factory/ (January 24, 2021).

  their helicopter crashed into a shallow creek: Christian Davenport, The Space Barons: Elon Musk, Jeff Bezos, and the Quest to Colonize the Cosmos (New York: PublicAffairs, 2018), 11–13

  “avoid helicopters whenever possible”: Alan Deutschman, “Inside the Mind of Jeff Bezos,” Fast Company, August 1, 2004, https://www.fastcompany.com/50541/inside-mind-jeff-bezos-4 (January 24, 2021).

  names of famous explorers: Mylene Mangalindan, “Buzz in West Texas Is About Jeff Bezos and His Launch Site,” Wall Street Journal, November 10, 2006, https://www.wsj.com/articles/SB116312683235519444 (January 24, 2021).

  selling $1 billion a year of Amazon stock: Spencer Soper, “Bezos Sells $1 Billion a Year in Amazon Stock for Space Project,” Bloomberg, April 5, 2017, https://www.bloomberg.com/news/articles/2017-04-05/bezos-hopes-big-windows-will-give-space-tourism-a-boost (January 24, 2021).

  unveiled New Glenn: Chris Bergin and William Graham, “Blue Origin Introduce the New Glenn Orbital LV,” NASASpaceFlight.com, September 12, 2016, https://www.nasaspaceflight.com/2016/09/blue-origin-new-glenn-orbital-lv/ (January 24, 2021).

  Blue ended up winning: Sandra Erwin, “Air Force Awards Launch Vehicle Development Contracts to Blue Origin, Northrop Grumman, ULA,” SpaceNews, October 10, 2018, https://spacenews.com/air-force-awards-launch-vehicle-development-contracts-to-blue-origin-northrop-grumman-ula/ (January 24, 2021).

  “It is time for America to return to the Moon”: Christian Davenport, “An Exclusive Look at Jeff Bezos’ Plan to Set Up Amazon-Like Delivery for ‘Future Human Settlement’ of the Moon,” Washington Post, March 2, 2017, https://www.washingtonpost.com/news/the-switch/wp/2017/03/02/an-exclusive-look-at-jeff-bezos-plan-to-set-up-amazon-like-delivery-for-future-human-settlement-of-the-moon/ (January 24, 2021).

  “I get increasing conviction… civilization of stasis”: Mathias Döpfner, “Jeff Bezos Reveals What It’s Like to Build An Empire…,” Business Insider, April 28, 2018, https://www.businessinsider.com/jeff-bezos-interview-axel-springer-ceo-amazon-trump-blue-origin-family-regulation-washington-post-2018-4 (January 20, 2021).

  “They’re two years… every year”: Michael Sheetz, “SpaceX President Knocks Bezos’ Blue Origin: ‘They Have a Billion Dollars of Free Money Every Year,’ ” CNBC, October 25, 2019, https://www.cnbc.com/2019/10/25/spacex-shotwell-calls-out-blue-origin-boeing-lockheed-martin-oneweb.html (January 24, 2021).

  CHAPTER 12: LICENSE TO OPERATE

  Millions of people around the world owned an Amazon Echo: Sarah Perez, “39 Million Americans Now Own a Smart Speaker, Report Claims,” TechCrunch, January 12, 2018, https://techcrunch.com/2018/01/12/39-million-americans-now-own-a-smart-speaker-report-claims/ (January 26, 2021).

  eight-year-long journey: Eric Pryne, “Amazon to Make Giant Move to South Lake Union,” Seattle Times, December 22, 2007, https://www.seattletimes.com/business/amazon-to-make-giant-move-to-south-lake-union/ (January 25, 2021).

  forty-five thousand Amazon employees: Matt Day, “Humans of Amazon: Meet Some of the People Behind Seattle’s Tech Juggernaut,” Seattle Times, March 8, 2018, https://www.seattletimes.com/business/amazon/humans-of-amazon-meet-some-of-the-people-behind-seattles-tech-juggernaut/ (January 25, 2021); Rosenberg and González, “Thanks to Amazon.”

  increased by 67 percent: Robert McCartney, “Amazon in Seattle: Economic Godsend or Self-Centered Behemoth?,” Washington Post, April 8, 2019, https://www.washingtonpost.com/local/trafficandcommuting/amazon-in-seattle-economic-godsend-or-self-centered-behemoth/2019/04/08/7d29999a-4ce3-11e9-93d0-64dbcf38ba41_story.html (January 25, 2021).

  the company donated almost nothing: Amy Martinez and Kristy Heim, “Amazon a Virtual No-Show in Hometown Philanthropy,” Seattle Times, March 31, 2012, https://www.seattletimes.com/business/amazon-a-virtual-no-show-in-hometown-philanthropy/ (January 25, 2021).

  “license to operate”: Will Kenton, “Social License to Operate (SLO),” Investopedia, August 23, 2019, https://www.investopedia.com/terms/s/social-license-slo.asp (January 25, 2021).

  2.25 percent increase on income tax: Phuong Le, “Seattle Approves New Income Tax for Wealthy Residents,” Associated Press, July 10, 2017, https://apnews.com/article/d747b2eef95449c3963bb62f9736ef93 (January 25, 2021).

  “head tax”: “A Close Look at the Proposed Head Tax,” Seattle City Council Insight, October 30, 2017, https://sccinsight.com/2017/10/30/close-look-proposed-head-tax/ (January 25, 2021).

  annual summer picnic: Taylor Soper, “Amazon Cancels Huge Summer Picnic and Post-Holiday Party as Seattle Employee Count Swells, Plans New Post-Prime Day Concert,” GeekWire, June 13, 2018, https://www.geekwire.com/2018/amazon-cancels-huge-summer-picnic-holiday-party-seattle-employee-count-swells-plans-new-prime-day-celebration-concert/ (January 25, 2021).

  $8.7 billion: Reid Wilson, “Washington Just Awarded the Largest State Tax Subsidy in U.S. History,” Washington Post, November 12, 2013, https://www.washingtonpost.com/blogs/govbeat/wp/2013/11/12/washington-just-awarded-the-largest-state-tax-subsidy-in-u-s-history/ (January 25, 2021).

  Nevada had offered Tesla: Jason Hidalgo, “Art of the Tesla Deal: How Nevada Won a Gigafactory,” Reno Gazette Journal, September 16, 2014, https://www.rgj.com/story/news/2014/09/13/art-tesla-deal-nv-won-gigafactory/15593371/ (January 25, 2021).

  $1 billion in annual tax incentives: Shayndi Raice and Dana Mattioli, “Amazon Sought $1 Billion in Incentives on Top of Lures for HQ2,” Wall Street Journal, January 16, 2020, https://www.wsj.com/articles/amazon-sought-1-billion-in-incentives-on-top-of-lures-for-hq2-11579179601 (January 25, 2021).

  Foxconn: Watchdog News, “Foxconn Chooses Wisconsin for Manufacturing Plant, Says 13,000 Jobs Will Be Created,” Center Square, July 26, 2017, https://www.thecentersquare.com/wisconsin/foxconn-chooses-wisconsin-for-manufacturing-plant-says-13-000-jobs-will-be-created/article_9a65242e-869a-5867-9201-4ef7b49fb2aa.html (January 25, 2021).

  HQ2 RFP… made public on September 7, 2017: Amazon, September 7, 2017, https://images-na.ssl-images-amazon.com/images/G/01/Anything/test/images/usa/RFP_3._V516043504_.pdf.

  Amazon watchers placed bets: Spencer Soper, “Amazon Weighs Boston in Search for Second Headquarters,” Bloomberg, September 12, 2017, https://www.bloomberg.com/news/articles/2017-09-12/amazon-is-said-to-weigh-boston-in-search-for-second-headquarters (January 25, 2021).

  “the city’s lifestyle… universities”: Emily Badger, Quoctrung Bui, and Claire Cain Miller, “Dear Amazon, We Picked Your New Headquarters for You,” New York Times, September 9, 2017, https://www.nytimes.com/interactive/2017/09/09/upshot/where-should-amazon-new-headquarters-be.html (January 25, 2021).

  Dallas: Laura Stevens, Sean McDade, and Stephanie Stamm, “Courting a Giant,” Wall Street Journal, November 14, 2017, https://www.wsj.com/graphics/amazon-headquarters/ (January 25, 2021).

  Amazon execs favored Boston: Soper, “Amazon Weighs Boston.”

  “be asking for tax breaks… communities”: Tony Romm, “Amazon’s Pursuit of Tax Credits to Build a New Corporate Headquarters Is Getting Early Pu
shback,” Vox, September 7, 2017, https://www.vox.com/2017/9/7/16268588/amazon-tax-credits-ro-khanna-opposition (January 25, 2021).

  “arrogant, naive and more than a teensy bit cynical”: Michael Hiltzik, “Column: Memo to Civic Leaders: Don’t Sell Out Your Cities for Amazon’s New Headquarters,” Los Angeles Times, September 12, 2017, https://www.latimes.com/business/hiltzik/la-fi-hiltzik-amazon-hq-20170911-story.html (January 25, 2021).

  Kansas City’s mayor: Natasha Bach, “Kansas City’s Mayor Reviewed 1,000 Products on Amazon to Promote His HQ2 Bid,” Fortune, October 12, 2017, https://fortune.com/2017/10/12/amazon-hq2-kansas-city/ (January 25, 2021).

  “not saying we’d fight a bear for you”: Shannon Liao, “The Eight Most Outrageous Things Cities Did to Lure Amazon for HQ2,” The Verge, October 19, 2017, https://www.theverge.com/2017/10/19/16504042/amazon-hq2-second-headquarters-most-funny-crazy-pitches-proposals-stonecrest-new-york (January 25, 2021).

  tour their proposed sites: Laura Stevens, Shibani Mahtani, and Shayndi Raice, “Rules of Engagement: How Cities Are Courting Amazon’s New Headquarters,” Wall Street Journal, April 2, 2018, https://www.wsj.com/articles/rules-of-engagement-how-cities-are-courting-amazons-new-headquarters-1522661401?mod=article_inline (January 25, 2021).

  end discounts for National Rifle Association: Richard Fausset, “Georgia Passes Bill That Stings Delta over N.R.A. Position,” New York Times, March 1, 2018, https://www.nytimes.com/2018/03/01/business/delta-nra-georgia.html (January 25, 2021).

  additional $22.5 million annually: Monica Nickelsburg, “Amazon Suspends Construction in Seattle While the City Considers a New Tax on Its Biggest Businesses,” GeekWire, May 2, 2018, https://www.geekwire.com/2018/amazon-suspends-construction-seattle-city-considers-new-tax-biggest-businesses/ (January 25, 2021), and Matt Day, “Amazon Paid $250 Million in Washington State and Local Taxes for 2017, Source Says,” Seattle Times, May 9, 2018, https://www.seattletimes.com/business/amazon/amazon-paid-250-million-in-washington-state-and-local-taxes-in-2017-source-says/ (January 25, 2021).

 

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