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Amazon’s Inspiring Growth Through The Years

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The year was 1997 and Amazon was losing more money than selling the books it was so proud of having. However, with courage that would impressive even the fiercest lion, Jeff Bezos decided the best way to counter this backlash was by going public in the same year when profits were at an all time low. Going public on Nasdaq with $ 18 per share, Amazon proved everyone wrong. From the time of the IPO to present day, Amazon has grown so much that if you invested $ 10,000 in a share in 1997, your shares would currently stand at a value of $ 4.8 million! Here’s taking a look at the impressive growth of Amazon through the years.

1997 to 2000

The moment Amazon.com went public, it was like a brand new revolution hit the internet.

  • With close to 80K regular users, close to $ 2.4 billion was spent on online shopping and on the Amazon website.
  • At $ 18 per share, the valuation of this e commerce platform stood at $ 438 million, giving it hopes of becoming a profitable company despite the multiple losses.
  • Finally realising the importance of branching out into different sectors, Amazon decided to expand the number of products available from one to 17, with 143 subcategories a year after it goes public.
  • To increase the user experience, Amazon introduced the one click checkout and promptly patents it, realising no one else had that feature at that point.
  • By the year 2000, Amazon’s share value had started climbing up steadily and by the time the dot com bust was in the offing, the share value stood at $ 91 per share.
  • While several e commerce websites and other startups plummeted into destruction, Amazon stood on semi solid ground.
  • Despite the steep decline of its share value (from $ 91 to $ 15,) Amazon decided to launch Marketplace, a feature which not only let the e commerce platform survive the bad times, but also allowed third party users.
  • Increasing the users from 4 million to 5.5 million, this extremely smart move not only ensured the survival of Amazon during the bad times, but also ensured its ride through to success.

2000 to 2006 

From the increase in the number of users to the introduction of new features, Amazon saw a massive surge in the response from people.

  • Amazon broke the internet with Free Super Saving Shipping for orders worth over $ 99, providing online shoppers with incentives to buy more, thereby increasing their revenue.
  • Looking at the success the Free Super Saving Shipping service garnered, Amazon introduced the first Cyber Monday sale! Over the years, this sale became so popular, it accounted for $ 3.45 billion in sales, with the day it was launched earning the most revenue in 2016.
  • Entering into new services and products, Amazon launched Amazon Prime, a one day delivery guarantee for people with the Prime membership. So well received was this service, it inspired a similar launch by other e commerce platforms like eBay and Alibaba.
  • The year 2006 was quite a revolutionary year for Amazon, with the e commerce platform launching Fulfillment, a service for third party users. Now, this particular feature is available in over 100 countries!

2006 to present 

The year 2006 saw an increase in the kind of people buying phones online, with Amazon being one of the first platforms that started selling the iPhone on the internet. With over 80 % of the people shopping for everything from books to electronic gadgets on the internet, it comes as no surprise that Amazon is one of the most famous and revenue generating platform in the world. In fact, for the last couple of years, Jeff Bezos has been so wealthy, he has held the position of being one of the richest people for the last few years in a row!

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Andhra Pradesh Hotels Association Announces Boycott of Swiggy Over Unethical Practices and Payment Delays!

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The Andhra Pradesh Hotels Association (APHA) has declared a statewide boycott of Swiggy, effective October 14, 2024. This decision stems from ongoing grievances regarding the food delivery platform’s alleged unethical practices and its failure to make timely payments to restaurants.

Reasons for the Boycott

At a media conference on October 4, APHA President R.V. Swamy outlined several critical issues that prompted this drastic action. One of the primary concerns is the significant financial losses that restaurants are experiencing due to Swiggy’s high commission rates. Initially, both Swiggy and Zomato operated in Andhra Pradesh with zero commission fees. However, these rates have escalated over time, with Swiggy now charging between 20% to 30% on orders. According to Swamy, restaurants are losing between 40% to 60% of their menu prices because of these practices.

Another major issue raised by the APHA is the delay in payouts from Swiggy, which reportedly holds restaurant earnings for up to 12 days. This delay places immense financial strain on smaller establishments that rely heavily on timely revenue to sustain their operations.

Allegations of Unethical Practices

The APHA has accused Swiggy of implementing “uninformed discounts,” where price reductions are applied without consulting restaurant management. This practice not only affects the profits of the establishments but also leads to confusion among customers regarding pricing. Furthermore, members of the association expressed concerns about Swiggy altering restaurant menus without prior consent, often selling items at lower prices or offering promotions like “Buy One Get One Free.” Such actions undermine restaurants’ pricing strategies and can damage their brand integrity.

Additionally, the association criticized Swiggy’s refund policies, stating that neither customers nor restaurants receive refunds for canceled orders. This lack of accountability exacerbates the financial difficulties faced by restaurants already struggling with high operational costs.

Response from Zomato

In contrast to Swiggy, Zomato has reportedly engaged in constructive discussions with the APHA and has shown willingness to address many of their concerns. Zomato’s responsiveness has fostered a more favorable relationship with restaurant owners, highlighting a growing divide in how each platform is perceived within the industry.

Future Implications

The impending boycott against Swiggy signifies a critical moment in the ongoing tensions between food delivery platforms and local businesses. As APHA prepares to halt sales through Swiggy, it remains uncertain how this decision will affect both the delivery service and participating restaurants across Andhra Pradesh.

This boycott could serve as a wake-up call for food delivery companies to reassess their business practices and consider more equitable arrangements with restaurant partners. The outcome may influence similar actions in other regions as restaurant owners increasingly seek fair treatment in an evolving market landscape.

In conclusion, the APHA’s decision to boycott Swiggy reflects deep-rooted frustrations within the restaurant industry regarding commission rates, payment practices, and overall treatment by food delivery platforms. As the deadline approaches, all eyes will be on how both parties respond and whether any resolutions can be reached before October 14.

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Mahindra Group Launches Dedicated AI Division to Drive Innovation and Efficiency Across Its Business Portfolio!

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The Mahindra Group has taken a significant step forward in its digital transformation journey by launching a dedicated Artificial Intelligence (AI) division. This initiative, spearheaded by Bhuwan Lodha, aims to harness the power of AI across the conglomerate’s diverse business sectors, streamlining operations and enhancing overall efficiency.

Centralizing AI Efforts

The newly established AI division is designed to centralize all AI-related activities within the Mahindra Group. By consolidating these efforts, the group seeks to implement a more coherent and effective strategy for utilizing AI technologies across its various enterprises. Lodha, who previously served as the digital chief for Mahindra’s automotive sector, emphasized that the growing importance of AI over the past two years necessitated this focused approach. He noted that many companies had been experimenting with AI on a smaller scale, but now there is a concerted effort to bring these initiatives into mainstream operations.

Tailored Solutions for Diverse Sectors

The AI division is committed to developing tailored solutions that cater specifically to the needs of Mahindra’s diverse business units, which include automotive, real estate, and hospitality. The division will not only create proprietary solutions but will also seek out innovative technologies from startups and academic institutions globally. This collaborative approach aims to ensure that each sector benefits from cutting-edge advancements in AI.

Collaboration with Tech Mahindra

While the new division will not have the same capacity to hire domain specialists as Tech Mahindra, the group’s IT services arm, it plans to closely collaborate with Tech M to leverage their expertise. This partnership will facilitate the development and deployment of advanced AI solutions tailored to enhance operational efficiency across Mahindra’s various businesses.

Building Talent and Career Opportunities

One of the key goals of the AI division is to consolidate talent within the Mahindra Group. By creating a dedicated career path for professionals specializing in AI, the division aims to attract and retain skilled workers who can contribute meaningfully across multiple sectors. Lodha highlighted that this initiative would not only provide exciting career opportunities but also foster a culture of innovation within the organization.

Generative AI Implementation

Mahindra & Mahindra (M&M), a prominent entity within the group, has already begun implementing generative AI technologies in its operations. The company has automated maintenance processes for robots and heavy machinery on factory floors, significantly reducing downtime and improving productivity. Additionally, generative AI is being utilized to enhance customer service through advanced chatbots, which streamline interactions and save time for customer service agents.

Strategic Partnership with Google Cloud

In a complementary move, Tech Mahindra recently announced a strategic partnership with Google Cloud aimed at accelerating generative AI adoption across Mahindra’s businesses. This collaboration will leverage Google Cloud’s advanced AI technologies to develop applications that enhance critical business functions such as engineering, supply chain management, and customer service. By integrating these technologies, Mahindra aims to optimize operations and improve customer experiences significantly.

Conclusion

The establishment of a dedicated AI division within the Mahindra Group underscores its commitment to embracing technological innovation as a driver of business success. By centralizing its AI initiatives and fostering collaboration with industry leaders like Tech Mahindra and Google Cloud, the group is well-positioned to unlock new growth opportunities across its diverse portfolio. As this division evolves, it will be interesting to observe how it transforms operations within Mahindra and sets new benchmarks in various industries.

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CCI Approves Merger Between Reliance and Disney

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CCI Approves Merger Between Reliance and Disney

Competition Commission of India (CCI) has granted approval for the merger between Reliance Industries Limited (RIL) and The Walt Disney Company’s Indian media assets, valued at approximately ₹70,000 crore (or $8.5 billion). This significant development was announced on August 28, 2024, and is set to create the largest entertainment
conglomerate in India, encompassing 120 television channels and two streaming services.

The merger involves RIL, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited, and Star Television Productions Limited. Following the deal, Reliance will hold a 63.16% stake in the new joint venture, while Disney will retain 36.84%. The CCI’s approval comes after previous concerns regarding the merged
entity’s potential dominance in cricket broadcasting rights, which could adversely affect competition and advertisers in the market.

The CCI noted that the approval is contingent upon the compliance with certain “voluntary modifications,” although specific details of these modifications have not yet been disclosed. The merger is expected to be completed by the end of 2024 or early 2025, with Nita Ambani appointed as the Chairperson and Uday Shankar as Vice
Chairperson of the joint venture.

This merger positions the new entity to compete vigorously against major players such as Sony, Netflix, and Amazon, leveraging a vast content library and extensive distribution capabilities. The merger agreement also includes provisions for Disney’s films and productions to be distributed in India through the new joint venture, which is anticipated to significantly enhance its market presence and operational efficiency in the competitive entertainment landscape.

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