• Re/code reports that “since the start of 2017, Amazon has gone on a private-label rampage, releasing at least 60 of its own brands — predominantly in the clothing, shoes and jewelry categories, according to a new study from the research firm L2. Amazon now sells more than 70 of its own brands by Recode’s count, after checking L2’s list with Amazon.
“With the rapid expansion, the company has silently delivered a message to retailers and brands that have shrugged off its earlier private-label launches as simply tactics that many retailers employ: We’re going big.”
And, the story adds, “even if many of Amazon’s brands flame out, its private-label approach has the potential to be disruptive because of how much data it can easily analyze about competitor brands that sell on its site - which products and price points are selling, and why - after mining customer reviews.”
• Re/code also reports that “Postmates and DoorDash have discussed a merger that would unite two of the largest restaurant-delivery startups in the U.S. in a bid to take on better-funded competitors like GrubHub, Uber and Amazon … The discussions have been on-again off-again over this timeframe, but there is currently no concrete deal on the table and there are several roadblocks to getting one done. One of the biggest obstacles is the decision of who would run a joint company … It’s also not clear if both sides are convinced they’d gain enough benefits from a merger to justify the risk and difficultly of combining two large private companies.”
The stakes, the story says, are significant: “By 2022, 11 percent of U.S. restaurant sales are expected to come from delivery orders, up from an estimated 6 percent last year, according to Morgan Stanley Research. That would equate to a $32 billion market opportunity within four years.”
“With the rapid expansion, the company has silently delivered a message to retailers and brands that have shrugged off its earlier private-label launches as simply tactics that many retailers employ: We’re going big.”
And, the story adds, “even if many of Amazon’s brands flame out, its private-label approach has the potential to be disruptive because of how much data it can easily analyze about competitor brands that sell on its site - which products and price points are selling, and why - after mining customer reviews.”
• Re/code also reports that “Postmates and DoorDash have discussed a merger that would unite two of the largest restaurant-delivery startups in the U.S. in a bid to take on better-funded competitors like GrubHub, Uber and Amazon … The discussions have been on-again off-again over this timeframe, but there is currently no concrete deal on the table and there are several roadblocks to getting one done. One of the biggest obstacles is the decision of who would run a joint company … It’s also not clear if both sides are convinced they’d gain enough benefits from a merger to justify the risk and difficultly of combining two large private companies.”
The stakes, the story says, are significant: “By 2022, 11 percent of U.S. restaurant sales are expected to come from delivery orders, up from an estimated 6 percent last year, according to Morgan Stanley Research. That would equate to a $32 billion market opportunity within four years.”
- KC's View:
