Amazon keeps on riding high
In calamitous times; when hurricanes or pandemics hit the land hard, accountants have a way to measure the resistance of a business against collapse.
Eagle-eyed bean counters, as they are sometimes colloquially called, carefully analyze the financial position of a company to find out how long the corporation can continue to honour its obligations in view of dwindling income streams.
The story is, however, different for the CFO of Amazon. Whilst the other financial directors in the tech world are worrying about consequential impending low demand on technology products and services, Amazon is currently overwhelmed with demand for its services.
Amazon is an American online shop with worldwide presence. It has massive warehouses stocked with whatever is imaginable; from books to sex toys.
Because Amazon’s shops are on the internet, they are resistant to lockdowns. The thing is that lockdowns do not affect logistics of essential goods. Cargo plane still fly delivering goods to all parts of the world. What this means is that Amazon still continues to receive orders and continue to make deliveries around the world.
Recently, the Amazon employees in Canada and France downed tools. They complained that there was too much work and that they did not have adequate Person Protective Equipment (PPE) as they carried their duties.
The employees also wanted the company to cut out on non-essential orders like toys and concentrate of important ones like pharmaceuticals.
The company responded by announcing that it had employed one hundred thousand additional employees around the globe and that it was planning to draft in another seven hundred thousand employees.
While other companies are laying off staff in USA, Amazon is employing more. While other companies are knocking on Trump government door for bailout remedies, Amazon has so much cash and is overawed.
Amazon’s fortunes have been rising steadily over the years. Jeff Benzos, the founder and owner of Amazon dislodged Bill Gates as the richest billionaire in the world a few years ago. At the time, I had difficulties in understanding that. Amazon is not essentially an inventor of technology like Apple, Samsung, Google or Microsoft. It is chiefly an online trader.
One day, the Coronavirus pandemic will be behind us and in that day, our children will live to tell stories to their children on how the local grocer lost to online store and how paper money lost it to TNM Mpamba and Airtel Money.
For now, Amazon and eBay are, if I may borrow the words of Eric Donaldson, riding high and will keep ridding high as they are everyone’s heart desire. I rest my case, my Lords.