What Else Is Amazon Doing?

We all know that Amazon (AMZN, Financial) has penetrated our lives and disrupted companies in many ways.

We are most familiar with Amazon Web Services, Kindle, Amazon Prime and Amazon retail in terms of Amazon’s disruptive services that have delighted its customers, but Jeff Bezos’ ambition seems to have no limit. There are many things Amazon is doing today that are still subtle but have different levels of indications to other industries. I’ve compiled a list of relative new offerings from Amazon that have made our lives much easier. I’d be delighted if our readers can add to the list.

1. Amazon Prime Now Groceries – This is Amazon’s two-hour delivery services for groceries and household items. I’ve used it many times as a prime member and absolutely love it. Amazon has significantly expanded the universe of items available.
2. Amazon restaurant (food delivery) within Amazon Prime Now – The neat thing about Amazon food delivery is that if your order is $35 or more, there’s no delivery charge, which saves a few bucks compared to other options.
3. Amazon lockers – These are secure, self-service kiosks where customers can pick up Amazon.com packages at a time and place that is convenient for them. I have not yet tried them; that could change soon.
4. Amazon Home Services – Ranging from house cleaning to home improvement projects, Amazon Home Services has impressive and expanded offerings for home needs.
5. Amazon Underground – This is basically a shop-in-shop concept in the app world. Essentially Amazon runs its own app store within the android ecosystem.
6. Amazon coins – Amazon’s digital currency that allows members to buy apps, games and in-game items. This goes along well with Amazon Underground.
7. Amazon Echo and Alexa – I have bought and used Amazon Echo for a while. Google and Microsoft (MSFT, Financial) have come up with their own version of “personal assistant.” Amazon has also introduced Echo Show and Echo Look, targeting certain customer groups.
8. Amazon Basics – This is basically Amazon’s private label offering in everyday items and home necessities like charging cables and knife sets. I’ve recently purchased an AmazonBasics Apple (AAPL, Financial) MFi certified charging and syncing cable for $7. I’m impressed by the value and quality of the products.
9. Amazon’s own delivery fleet – Amazon has built its own UPS (UPS, Financial) and USPS department with its own Amazon logo delivery fleet (probably mostly on Sundays). As last-mile delivery is the most expensive part of the logistic system, it was a matter of when, not “if,” Amazon would develop the last-mile package delivery capability.
10. Amazon Flex – This is the Amazon version of “Uber” in the delivery world. You work flexible hours and make $18 to $25 per hour delivering for Amazon. As more drivers sign up, will Amazon come up with its own ride-sharing app and take on Uber and Lyft?

I’m sure Amazon has multiple projects in progress, each of which has the potential to disrupt the current market. For instance, The New York Times has reported that Amazon has plans to open physical furniture and home appliance stores that let customers shop in augmented reality. Also fascinating is the “Amazon Go” stores, or Amazon’s cashierless convenient grocery stores. Bezos’ imagination truly has no limits.

As an Amazon Prime member, I have been constantly delighted by the membership offerings and services. As a value investor, I have also been constantly struggling with Amazon’s valuation. As Warren Buffett puts it Amazon’s market cap always seems to more than reflect the power of the model. At today’s price it seems to me that a significant amount of expected future prosperity has been reflected in the valuation even with fairly optimistic revenue growth and profitability assumptions. I may continue to struggle with how to value Amazon. But at the same time, it’s not a bad thing in my life to be delighted by Bezos day after day.

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