It seems that it is natural that Everything Store is doing, well, everything. It is also a necessity.
has just given the world a strong reminder of its ambitions. On Thursday, the company announced a new effort to strengthen its own package delivery network by hiring small business owners to operate vehicle fleets with the Amazon brand. On the same day, Amazon also announced its acquisition of the PillPack online pharmacy for a reported million dollars.
This latest move inserts Amazon directly into the US prescription drug market. $ 400 billion. It is likely that it is only part of the company's health care ambitions. Amazon is also working with
in a new company with the aim of reimagining the provision of health services for its own employees, which now collectively total close to 1.2 million.
These latest efforts come just a year after Amazon breaks into the grocery market with its $ 13.7 billion acquisition of Whole Foods Market. In fact, it has been years since the online retailer focused exclusively on online retail. Amazon is now also a consumer electronics designer, Hollywood studio and advertising company, to name just a few. And do not forget the cloud computing business that now accounts for 10% of the company's revenue and 96% of operating income.
All these efforts feed an unparalleled growth machine for a company the size of Amazon. Now it is generating almost $ 200 billion in annual sales. Analysts expect it to exceed $ 350 billion by the end of 2020 and exceed the $ 500 billion mark by 2023. To achieve this, Amazon will need to maintain an annual average of revenue growth above 20%, something not to be overlooked . The six companies based in the US UU With more than $ 200 billion in sales in the last year, they averaged less than 8% of sales growth in the last 12 months, according to S & P Capital IQ.
If Amazon meets these ambitious goals, it will not do so just to sell products over the Internet. The company already accounts for approximately 44% of online retail sales in the US. UU., According to eMarketer. While online sales continue to grow, their progress will slow down.
Amazon's share in the general retail market is much smaller. Amazon revenues in North America for the first quarter accounted for about 3% of total US retail sales. UU During the period, according to data from the Department of Commerce. Getting more of that will require Amazon to at least speed up its Whole Foods grocery business, but other companies will also have to start.
The price of Amazon shares has risen 45% this year, having gained another 2% only in the last announcements. That has turned the company into the second most valuable business on the planet, which represents a big bet for investors that Amazon will be everywhere soon, and not in a small way.
Write to Dan Gallagher at [email protected]