CNN Analystic Full Policy About The Amazon Monopoly and the Problem with Jeff Bezos' Business Model
Who. Are you I'm Jeff Bezos. What. Is your claim to fame. What. Began as, an online bookstore. Millennia. From now people, are gonna look back and say wow has. Become, a virtual. Empire, Amazon. Really is arguably, the most successful company. In the history of business that's. Saying a lot. This. Is the beginning, of e-commerce you. Guys didn't even know if this thing was gonna work we had, a pretty good instinct. If, you make the best service, online people will come. This, is a company that wants to control, the infrastructure. As. Computers, continue, to get cheaper we, will lay our innovation, on top of that. It's. Plausible that Amazon, will know you better. Than you know yourself. Alexa. It's in our homes, should. People trust, that it won't be used, against them in some way that they don't authorize, absolutely. At, our, fingertips. Amazon. Web Services, took, over the web basically, in a decade. Does, having that much power give, you pause that's. A significant, responsibility we're. Aware of that and. Now, it fuels our economy. Amazon. Is America's, second trillion-dollar, company now the. Company is now worth almost as, much as the entire economy, of Australia. If. Amazon too big I don't. Think Amazon is too big I. Think. They have monopoly, power, Amazon's. Become an invasive species so you think that Amazon, should be broken up 100 percent a, journey. It's, a business miracle, and. A leader. Unlike. Any other this. Is blue moon I asked people at Amazon a can wake up every morning afraid, wake up terrified be afraid of our customers, those, are the people we have to pay attention to tonight. A CNN. Special, report, I can, guarantee you one thing it'll be fun the. Age of, Amazon. How. Has the retail industry changed. During this rise of Amazon well, you have this sort of great white shark but so is you know kind of looming offshore, great white shark well this thing does, and can't eat everything. Despite. Holding only, a small fraction of global, retail, sales today, Amazon. Takes claim for nearly 50, cents of every dollar spent, in online, e-commerce in, the United States an astounding. Market dominance. You've. Called what Jeff Bezos has built a miracle, absolute, articles it's, one, of the great math and maybe. Be greatest before he gets all through, legendary. Investor Warren, Buffett even. Called himself an idiot, for not investing in Amazon, earlier. What. Is it about Jeff Bezos the, man that, has made him an Amazon such a success. You. Want to climb. Warren. Buffett told me just a few weeks ago the. Rise of Amazon, in his view is a miracle. Isn't, a miracle it's. A business miracle, I. Mean you wouldn't have thought that almost. A trillion dollar company, would be formed in 25. Years that, it would disrupt so many different things and creates so many different things and it's, still a growing machine so. Yeah it's a business miracle. Miracle. Seems, like it's an act, of God and Amazon has been anything but I. Think. It's the application of, business, wisdom and technical expertise, over a long period of time, Brad. Stone, has been studying. Amazon, and writing, about its growth since, the late 90s, you're. Writing another book about, Amazon. What's. The focus where does this pick up the, everything store and, at in in about 2011. And, there were so much story left to tell the, company is about four times larger than, it was that so much has happened in. Addition, to selling millions of products, Amazon. Also, manufactures. Thousands. Of its own products, for the amazon marketplace. Everything from batteries, to luggage to motor oil but. Then. Increasingly. More. Than half of what sold on Amazon comes. From a combination of, wood. Old mom and pop sellers, to. Bigger, operations. That are selling. Directly to Amazon customers. On their own and Amazon's just taking, a cut, a, seller. A manufacturer. A marketplace. And just. The beginning of Amazon's. Reach. They're. Making investments, in health care you're. Trying to fix that make it better with Jamie Dimon and with Jeff Bezos what, should America, expect the three of you can do on health, care that, we'll do our best yeah it's, it's a three point three or three point four trillion dollar industry in. Finance. What. Would your over-under, be on Amazon. Becoming a bank one day I think, it's I really. Don't know. Even. A category like online advertising. They're, the third biggest platform for, ads in the u.s. only. After Google. And Facebook. Television. Who's the second, largest spender, on original, scripted television in, the world right now, Amazon. How. Big do, you guys want to be. It. Has been reported, that Amazon spends 5 billion dollars a year on, original, and licensed, content, am I in the ballpark I can't confirm or deny that Thank, You.
Alexa. Ok. The most innovative product, of the last three years I would argue as Amazon's echo device Alexa. Turn. On the shower, kill. Traditional. Retail how, do you see it. What. We're trying to do is invent for customers we sort of look at things that we could make better by. Innovation. I. Would. Describe Amazon. In medical terms an opportunistic, infection, that has literally, called the herd of any weakness, or the Aged in retail, now where some of these companies who went out of business going out of business anyways, yeah but, Amazon, made the decline, much faster. In. Part by, reimagining. The physical. Store experience, with, their own Amazon. Branded, retail stores. Amazon. Is now the only firm in the world that can really perform consistently what I refer to as Jedi Mind Tricks when. Amazon announced the acquisition of Whole Foods the, value of Kroger, the largest pure-play grocer, in the world its, value declined 1/3. It's. Not just a matter of being big it's also the structure of its power, Stacy, Mitchell, is co-director of the Institute, for local self-reliance a, nonprofit, that studies, economic. Concentration. A handful. Of big companies have taken over large swaths of our economy, we often try, to understand, Amazon, by talking about all the different businesses, that it's in. And, more accurate, way to understand, Amazon, is that this is a company that wants to control, the infrastructure, the rails that other companies, need, to use in order to get to market. The. Infrastructure, of infrastructure, infrastructure, let's entrepreneurs, do amazing, things, in. Addition to the retail platform the, cloud is another area that is essentially, infrastructure. Speed. Is a really important part of the culture at Amazon. We're. Trying to enable really, any company, or any government, to be able to run their technology, infrastructure, on top of our technology, infrastructure, platform so a lesser-known, part, of Amazon, AWS. Amazon's. Cloud, business has, been instrumental, to the company's bottom line. Amazon. Web Services, took over the web basically, in a decade. When. Investigative, technology, journalist Kashmir, Hill started, noticing the, growing, footprint, of Amazon, in her family's, life she. Decided to try an experiment, to. Live without. Amazon. I worked. At this technologist, who, built a tool, for me that, just prevented, any of my devices from talking to Amazon servers so, that prevented, me from using the thing I use the most with, Amazon which is Amazon Web Services, not. Surprising. Given that AWS. Supports, countless, companies and government, agencies and, powers, one-third, of the world's cloud. Netflix. Condon asked the CIA all, rely, on Amazon, Web Services. It's. Just impossible to avoid. Amazon's. Become an invasive species an, invasive species under her side. Next. How. Bezos, did it Hong, Kong Japan. Australia. This. Is day one this is the very beginning. Chicken. Alfredo has, always been a profit in love so I created, my new line of oh that's good frozen, skillet with a twist we've swapped some of the cream in the sauce or pureed cauliflower, but, it's so delicious, you'd, never know oh that's. Oh. Applebee's. Handcrafted, birthday. By. 2012. Japan goes up you. Would be hard-pressed to, find someone, who hadn't heard of Jeff Bezos Jeff, Bezos the godfather of a virtual, bookstore. The. Everything store but while researching, his book journalist. Brad stone found, that, person. I said, I'm writing a book about Amazon, and about. This guy named Jeff Bezos and I would like to talk to you for it he had no idea what I was talking about that. Person, was Jeff Bezos his biological, father, I was. Like well he's, your son and. He. Was perplexed, and I said when you were in high school back.
In Albuquerque, you know you had a son named Jeff and he said this he's still alive and, I. Was like yeah he's one of the wealthiest guys in the world. Jeff. Bezos was born in Albuquerque New Mexico in. 1964. His. Mother Jackie, Geiss was a junior in high school when, she and her boyfriend Ted, Jorgensen, became parents, she. Doesn't talk about it that much but my, mom had me when she was 17 years old you could ask her but I'm pretty sure that wasn't cool, in, 1964. To, be a pregnant mom in. High school but, by the time Jeff turned to his, mother and Jorgensen. A circus, performer and, unicyclist. Had split up Jackie. Was left to raise her son on her own, look. At Jeff look, at that hair in the glasses, one. Of bezos's closest. Friends from high school Joshua. Weinstein, remembers, Jackie as a loving, and determined, mother. Jackie. Is the, toughest, hardest-working, person I've ever met, and the most loyal and Jeff, gets that from from Jackie Jackie. Basis, was clearly, the force, in in Jeff's life a fiercely. Protective, mother who. Got Jeff into the best schools and got him the best opportunities. And she also recognized, I think Jeff's abilities, early, on, Jackie. And Jeff wouldn't be a family, of two for long. Soon. Jackie would fall in love with a Cuban, immigrant named Miguel, Bezos, they, married, when Jeff was four. My. Father, adopted, me when I was about four years old I have, the world's best dad. Science. Whiz Jeff Bezos is an outstanding, student emphasizing. High standards, vaso, says academic. Ambitions, would lead him to the top of his high school class and. Then. To, Princeton, University I, went. To Princeton specifically. To study physics, but a couple of years into it I realized but. I wasn't smart enough to be a physicist. And. Then, I transferred, to computer, science Electrical Engineering, which, I loved, and never. Looked back. After. College, Bezos, landed, on Wall Street at the quantitative, hedge fund de sha where, he would meet his soon-to-be. Wife Mackenzie. He. Called me up one day and he said I'm getting married I said great - who. Just. Six months after they began dating Bezos. And Mackenzie, were married, and Bezos. Continued, to rise through the ranks at, de sha where he began to explore a burgeoning new medium the, Internet. It, spans, the globe like, a superhighway, it is called Internet, I started, looking at the. Internet and I found this incredible, startling. Fact. Jeff. Bezos saw that web, activity, had jumped, 230,000. Percent in a short period of time that was the ding-ding-ding, in his head yeah. I think he was able to see very early you, know that the web was growing, that people were embracing, it and that it would create a whole set of new business opportunities. Jeff. Called me and he said McKenzie and I are quitting our jobs and, we're moving to Seattle and we're starting a company and. I said great what are you to do he said we can sell books he, said nice he, said on the internet I said cool, what's. The internet. In. 1994. Then 30 year-old Jeff Bezos ditched, his lucrative Wall Street job borrowed, his father's car, and drove. With his wife Mackenzie, to Bellevue, Washington just. Outside Seattle and inside. That garage Jeff, Bezos started, his own company an, online. Bookstore, and, by the end of the year that company, had a name Amazon. I. Want. To ww. Amazon.com. And, started. Searching for books and was, immediately hooked, Jennifer caste would become Amazon's, 25th. Employee. By. The time she was hired in 1996. To run marketing. Amazon. Headquarters, had moved from the bezos's, garage, to, actual. Offices, in downtown, Seattle. Was. Definitely, startup feel the, first building, it, was a dump, Jeff thought that it was too fancy, for us there, was no air conditioning, stained, carpets, but. We, loved it. The. First thing that you did when you started at Amazon is you built your own desk Greg. Hart joined Amazon, in 1997. Working, in product management and marketing for books today. He runs Amazon's, foray into Hollywood, I'm, video. Tell people what Dora desks are was it truly frugal, to save money each ruble that, was exactly how it started was frugality, but. Also it's a good symbol of the mindset, that Jeff wanted to create we, had to be resourceful and creative. But. In order to expand, beyond, books way. Beyond books Bezos. Needed, capital and a lot of it.
Amazon.com. Jumped. Five and a half dollars on its first day of trading so, in May of 1997. In the middle of the dot-com frenzy. Amazon. Went public, what's. Really incredible about this is that this is day one this is the very beginning this is the Kittyhawk, stage, of electronic, commerce. Day. One it's, always, day one became, the Bezos, mantra, in his, first letter to shareholders. Vaso sketched, out the foundation. Of Amazon. It's. All about the long-term I like. In a tux Babe Ruth kind of calling, his homerun, shot it, was audacious. Bezos. Would stick to that long term thinking even. During Amazon's, toughest, times Amazon. Stock has lost much, of its luster after, the dot-com bubble burst Amazon. Stock price tumbled, investors, ran for the exits losing, more than 90 percent of its value in the next two years. There. Were famous analysts, who said Amazon. Would run out of money but, was also a hard time they were losing a lot of executives. Our. First announcement, is a complete, video game store facing, intense pressure store number two Bezos, pushed ahead right. Into new markets tomorrow. We, launched these four new stores. People. Were amazing. The customer focused they felt like they were inventing. And breaking. New ground but. With new inventory came, new, problems, how. To store, and ship, all of it. So. You. Are often referred to as the other Jeff, that's. My name I think, it's great I grew, up as a programmer, that's me Jeff Wilkie has been with Amazon, for 20, years, and rarely gives television. Interviews, he's, now one of bezos's, top, executives. We. Have a essentially. An assembly, process, but back in 1999. When Wilkie first joined Amazon. He used his background, in manufacturing to, transform, Amazon, delivery into. What would become Amazon. Prime, you. Guys didn't even know if this thing was gonna work true. No, we didn't know for sure that customers. Would love it but we had, a pretty good instinct. Both, of you, both Jeff's our big, risk takers, is, that right I think, so I think, prime at, the time was a big risk. Today. It's estimated that more than half of US, households, are Prime members. What. Should that tell us about how important, prime is to Amazon's success, I think it's very important, but it's not the only thing that's important, for our success. They. Say about you that you are the most powerful, man in the cloud do. You like that description. The. Man behind, amazon's. Cloud next. Jeff, Bezos the, richest man in the world but. They say about you that you are the most powerful man in the cloud do. You like that description, I don't. Think of it that way. In. The heart of Amazon, Seattle, campus I met with Andy jassie one, of Jeff Bezos is top, leaders, the, CEO, of, AWS. The, man who built amazon's. Cloud. Or. In the spheres which, is kind, of an amazing place when you look around there are 700, species and 40,000, different plants in here. It's, a place that Amazonians. Can come and do, work. It's. Really nice to be able to get away from what you're doing every day and be inspired by what's around you whose, idea was this I think. It was Jeff's idea. But. Amazon, Web Services. That, was, Jesse's, idea, an idea, so, powerful. It is now perhaps, Amazon's. Most valuable. Business. It, generates, an unusual. Amount of margin for Amazon, the best margins, frames on peers yeah and it's really almost single-handedly. You kind of change enterprise, computing, I. Think. It is fair to say many. People watching this have, no. Idea what AWS, is where, did it come from there. Were a few things going on I'll. Call between 2000, 2003, that made us think that this was an interesting idea, most. Notably, Jesse, realized, that, in order to continue, expanding and, experimenting. At a pace their leader had come to expect, Amazon's. Computing. Technology, would, have to move a lot faster, if. You need a server to try an experiment it typically takes you 10 to 18 weeks to get that server with, the cloud you can you can spin up thousands, of servers and minutes so, we, figured if we needed it it was probably likely, that a lot of other companies, need it as well, in. The same way that Amazon, transformed.
The Speed of shipping physical, products. AWS. Has done the same for data. The. Cloud is not up there it's you know in machines sitting, on the ground all around the world and they're just storing, all this content, and shipping. It out to web users. What. Strikes me is that it worked and then you essentially had a seven-year, lead on all your competitors. This. Is like the greatest piece of business luck, in the history of business so far as I know, why. Didn't no one follow quickly, it's, a really good question and I don't, know if we know the answer for sure in, the beginning a lot of companies, would. Poopoo, the cloud and say that nobody was going to use it for anything interesting, and when the value proposition, is that good, for, consumers you. Can have the wind all you want but you can't fight gravity. Thirteen, years later the, cloud is now a seventy, billion, dollar industry and while, formidable. Competitors, have emerged, Amazon. Continues, to dominate with, a seemingly endless list of customers, from, fortune 500, companies to, tech startups, to, yes, CNN, even, secretive. Government agencies, including, the. CIA. The. Cloud is crucial. To the economy, it's now crucial, to national security do. You think there should be more federal, regulation, of it governments. Who can make their own decisions, on what they feel like they need to regulate and what they feel like they don't need to regulate, and, we expect, that governments. Will want, to understand, how we're operating as more and more workloads, are being put on top of AWS, for. Now. The federal, government is, busy deciding how much more of the nation's most sensitive, data it wants to place in Amazon's. Hands. AWS. Is a final, contender, for the Jedi contract, a ten, billion, dollar Pentagon. Deal that, would involve hosting, government, data for, operations. Critical, to, military, missions, across, the globe, we. Think it's integral. For the Department of Defense to have access to the most sophisticated. Cutting-edge. Technology, exist period does. Having that much power give. You pause we. Have over 3,000, government agencies, using AWS in, a significant, way that's. A significant, responsibility we're. Aware of that but. Most Americans, are not aware of the extent to which our government, our. Economy. And our, homes, now, rely, on Amazon. Alexa. Popcorn. Starting. Popcorn. Although. A vastly, different kind. Of technology, Alexa. Like the cloud has unleashed, its own revolution. We, launched with 13 skills now, we have over, 80,000. Skills Alexa, can actually just do over a million things. Tony. Reed has been with Amazon, for 21, years and headed. Alexa's, introduction. To the world you. Have said that voice, is the technology that, in your words we didn't know we, needed why. It's, so natural this, is our natural user interface. Voice. Is going. To quickly, emerge as one of the primary ways that we interface, with machines. And this. Is happening, faster than a lot of analysts. Even, projected. Alexa. Tell, me the news on CNN, what, it means is that we are talking, more, than we're typing and if, it's the case then we have a very close and personal relationship, with. These companies, but. How close is too close and, who exactly, is listening, Alexa. Stop. What. Does and, doesn't, Alexa. Record. Alexa. Only, records, after. She. Hears the wake word who.
At Amazon, here's, what I tell Alexa, when I'm talking, to her a small. Group of. Annotators. Who, do, some ground truthing they. Take very small subsets. It's it's dealing, from customer, data to help, train the models that go back into improving. Speech, technology. There. Are people on the other end. Antonio. Pettit is one of them during. His seven-month, contracted, Amazon Pettit analyzed, Alexa, commands gone wrong in order to improve the technology he. Now works in artificial, intelligence at Microsoft. Amazon. Is listening, to what you tell Alexa not, in any, type of nefarious. Way to, my knowledge I believe, that everything, that they do is based on quality, assurance but. People should know that I think that that is something that is definitely not advertised. What. Do you say to those folks who think, oh my gosh, someone's listening to me I think, it's important, for customers, to understand, that we're not listening to them it's a very very, small percentage. That. Is is carved. Off for. Ensuring. That the, models are doing what the models say that they're supposed to do, but. If you're one of the estimated, 66. Million. Americans, who use a voice assistant speaker. You, know that. Voice technology today, is, far. From perfect many. People have heard the, story of the. Couple's. Conversation. They got recorded, without them triggering, Alexa, with the key word and. Actually, emailed, the. Tool, to a contact, of theirs how. Does something like that happen in. That particular, case. Alexa. Did what. It thought the customer was intending, Alexa, to do and in, the, end we. Still got it wrong there, are defects for us and we try, to learn from those is, there a day that, you foresee where. You. Can 100%. Guarantee. That won't happen again, there's, no technology that works 100% of the time we should strive towards that which, we are I, think. The problem is the, law we, have a very weak legal, framework around privacy that doesn't give consumers.
A, Lot of rights unless you're, monitoring. The traffic monitoring. Your network you can't really know what's happening in the background you have to trust what the company is telling you it's doing, should. People trust that if, parts, of their conversation, ARLA, and to that, it won't be used, against them in some way that they don't authorize. Absolutely. Next. The, most important, thing that we've done over the last 20, years is earn trust, with customers. But. Is that trust in Amazon, eroding. I think. They have monopoly, power I. Think. The most important. Thing that we've done over. The last 20, years is. Earn trust, with customers we've worked hard to do that. Today. Americans, trust, Amazon, with just about everything you're a consumer it's hard not to love Amazon. According. To a 2018. Study Amazon, is the second, most trusted, institution, in the country. Second. Only to, the US military, is. There any sign, that that trust is eroding, I think. There's a general erosion, of trust across all a big tech companies, like Amazon. That made billions in profits, did not pay one nickel in, federal income tax how. Is it that. Amazon, is paying, less in taxes, than you and your family. Technically. It's more complicated, Amazon. Does pay state taxes, and it has paid federal taxes, in the past but. It's also taken, advantage, of billions, in corporate, tax breaks, we. Pay all the taxes were required, to pay we, pay 2.6. Billion, in cash taxes in the last three years if last, year we, paid no tax in the, u.s. it was because the law required. Us to pay no tax. Since. 2011, we've invested, 200 billion dollars in, the u.s. in, infrastructure. For fulfillment, and delivery, and data centers and solar. Farms. And wind farms that these are exactly the kind of investments, that, the, tax, code was intended to stimulate, but. The result of it is that it's, a that ends up being a deduction, that means, we, didn't pay any tax last year but. It's not just taxes. That have critics questioning, Amazon's, business, practices, the. Antitrust, laws are really focused, on promoting, competition, in. 2017. Yale Law student, Lena Kahn published, Amazon's, antitrust. Paradox, a paper. In the Yale Law Journal that reframed. The national, conversation on, antitrust. Law in America, when. You have a situation when a single company is effectively. Able to set the terms of the marketplace that's. A situation where I think we should worry about the. Market. Not being competitive, critics. Argue that Amazon's, platform. Has become so, dominant. Anyone. Looking, to sell products online is, practically. Forced, to sell there if, you want to reach consumers online and, you're not selling, through Amazon, you're giving up half the market right out of the gate. Questions. Have also been raised about the data Amazon, collects, from all of, its marketplace, sellers we, see Amazon. Minds. Their data watches, what, they're selling well and then become a seller in that category itself, it's a very difficult environment, in. Order to succeed, in but. Jeff Wilkie the man in charge of, the Amazon, Marketplace sees. It much differently. We, don't use any data. About, specific. Items that's not available to. The world by just looking at at our website. Which, may be true but amazon, knows how to access and, analyze, its data better than anyone, else. Does. Amazon give priority to and prioritize, its, private, label in search we prioritize. The things that customers want strong. For in a recent hearing on Capitol Hill an Amazon, attorney went a step further and. Categorically. Denied, the claim we do not use their individual, data when we're making decisions to launch private brands our incentive. Is to help the seller succeed, because we rely on them, third-party. Vendors now make up more, than half of, Amazon's, online, sellers, helping. To fuel its marketplace, dominance. Worldwide. Retail is something like 30 trillion dollars we. Are about 1% of that you're. About 1% of worldwide retail but you're about 50%.
Of Us e-commerce what's. Interesting to me is no customer, that, I've talked to wakes up in the morning and says what. Am I going to buy from ecommerce today and then. Says what am I gonna buy from the store today they say what, do I need or what do I want what, do you say to folks who say well I like Amazon, it's super convenient but it did kill mom-and-pop. Shops I actually. I don't think it killed mom-and-pop, shops there's plenty, of evidence that there are mom-and-pop, shops, thriving. Online. And offline, too but. According to a study by the Institute for local self-reliance. 90%, of more than 850. Small businesses, surveyed say, Amazon has, had a negative impact on, their revenue, we've. Seen this sharp, decline, in a number of small businesses, across a lot of different industries we're. Now creating new businesses, at about one-third, the rate that we were in the 1980s. And. Washington. Has started to take notice the. Justice Department announced it is conducting, a broad antitrust. Review of the online marketplace, while. Congress, has also launched, its own investigation of. Big tech we welcome everyone to our first including, Amazon, I think they are behaving like a monopoly, I think they have monopoly, power the internet has become increasingly concentrated, congressman. David, Cicilline is. Leading, the top-to-bottom. Antitrust. Probe. Congress. Doesn't have the ability to break up a company letting other people I've been suggesting that but, we can set the statutory framework, and provide, the resources and, the regulatory guidance to. Make sure that competition, exists, in all of these spaces. Regulators. In Europe, have had their eyes on big tech for, some time, Alison. Now has to repay the tax benefit. This past July the EU stopped antitrust. Official, commissioner, Margaret, Vesta formally. Launched, an investigation of, Amazon's. Marketplace, so. I asked, Jeff Wilkie the CEO of consumer. For Amazon, flat-out as Amazon give priority to, its private label in search, and he said to me we prioritize, things that customers want. We, don't take what you say for granted we really want to see the evidence a lot, of people would want to sell what people want not only Amazon, so, of course we would like to see well how does this dual relationship. Work that you both a host and a, competitor, and and, that is the key question here. So. If you're deaf is is how freaked out would you be about, European. Regulators, right now well, I think they are suitably freaked out so you think, that Amazon, should be broken up 100%. We. Have intense, competition, everywhere, in the world in. Every one of our businesses so, I the, main question for me is why. If. Amazon, too big I don't. Think Amazon is too big and I think if you look at most of the business, segments, in which we operate we are a relatively. Small percentage, of the total market, segment, what. Do you make of the calls to break up Amazon, I think that's a silly idea in, concept, Amazon, is doing a lot of good things a lot of people that's, not a problem they have a lot of competitors. One of those potential, competitors. Is Jamie Dimon, CEO, of America's. Largest bank. Jeff. Bezos tried to hire you yeah we, first had lunch and we just hit it off and we've been friends ever since, are you more partners, or competitors, with Amazon, we're, partners. We, do business together you know we have the dog together we do a bunch of stuff, since. 2002. JPMorgan. Chase has partnered, with Amazon, on a consumer. Credit card, yet. Dimon, remains acutely, aware of Amazon's. Ability, to disrupt new markets, you. Did create, a team I think it was 2017. To, essentially think about Amazon. If. We were then if they were oz would you do how you look at it what can they do to compete how, might we, want a partner. Competitor. Partner, or both Dimon. Warns that the days of an unregulated, tech, industry, may, be numbered. What's. Coming I'm, not warning them like they're bad I'm saying you better get ready for this if they're not geared up for that I think, they're honestly. They are gearing up for it they. Should be. For. His part Jeff Bezos seems, confident, in his company's, ability to battle, whatever, storm, may be coming we. Are so inventive that, whatever. Regulations, are promulgated or, however it works that, will not stop us from serving customers have, a good weekend. In. The midst of historic. Hollywood. Amazon. Is the new kid on the block, where. Are we this is iconic, Culver. Studios this, is the Gone with the Wind house and it is now the home of Amazon, Prime video it, is the home of Amazon Studios exactly. Breakheart, is, the worldwide, vice-president. Of prime video Amazon's. Video streaming, service. Who. Came up with that idea to create the, video Jeff, said, what. If we licensed. A bunch of content, and made it available at, no additional charge, to.
Prime Members and. Everyone. Sort of looked, at each other and looked at him and thought okay. That's. An interesting idea people. May come for, the. Shopping but they stay for the entertainment is, the goal to win Oscars or, to sell more paper towels I, think. The goal first and foremost is to delight, our customers and so people who engage with prime video they. Convert from free trials to paid membership, at a higher rate they renew. Their memberships, at a higher rate and they shop more did, you know it was gonna work of. Course not. Phone. Is gorgeous, I can't wait for you to get your own but. In Jeff Bezos his mind any risk, on behalf of the customer is a risk, worth taking when. We make mistakes and we've made Dizzy's like the fire phone and many other things that just didn't work out I can I could live we don't have enough time for me to list all of our failed experiments, but, the big winners pay. For thousands, of failed experiments back. In 2009. Hart, who has been with Amazon, since, 1997. Got, a behind-the-scenes. Take on how the Amazon, founder thinks, spending. Two years in, a coveted, role as Bezos, shadow, what's. The most, important. Lesson Jeff. Bezos taught you during, that time the incredibly. High standards, that he has for, what Amazon is capable of and what the people that work at Amazon are capable angle do you think the bar is high it can be higher exactly. The. Secret, sauce of Amazon, the number one thing that has made us successful by. Far, is. Obsessive-compulsive. Focus, on the customer, as opposed. To, obsession. Over the competitor, when you look at Amazon and Jeff they're always it that is so. Paramount and and. You know transcends. Almost all the things so yeah, you learn from that has he affected, the way you run your back, oh sure, if you made a bunch of products and services where, you click on it you have to wait a second. And, we. Didn't really think about it very much until I was reading something about, amaz I said my god we're just we're going to be much faster what's your slow we're too slow well. That exacting. Culture, has brought Amazon, extraordinary. Customer, satisfaction. It has also brought on harsh criticism. From some, of its workers, the, culture is, competitive. And and. Cutthroat. I would say Mount, Everest time is, 29,029. Feet antonio. Pettit worked on a seven-month, contract, for Amazon's, Alexa, team, not, a lot of care. Seems to be taken to ensure that you. Know people aren't just burning out working, there that's what I see not always taken into account is the the. Cost of having. This convenience. Is oftentimes built on the backs of the people who are working, yeah talk. A little bit about the. Culture, there was that, 2015. New York Times article, about culture, here at Amazon. And, employee. Saying that it can, be cutthroat and that it can be relentless. When you read that what did you think I think it was quite, skewed and I think, that if you have a company, with several hundred thousand, people like we do if. You want to write a certain perspective and find some people to support it you can really write almost anything you want but. The Times interviewed. More than 100, current and former Amazon, employees, including. Executives, across departments. Describing. Quote sometimes, punishing.
Aspects, Of their workplace, complaints. Have also come from workers at fulfillment. Centers these jobs hard. You, know people. Are standing in, the same spot for. 810. Hours a day during maybe during peak season, there are complaints about limited, breaks. There. Are complaints, about just. The quotas. And the goals. Just. This past July warehouse. Workers, in Minnesota launched, a prime day strike during. One of Amazon's, busiest, days of the year. You're. Aware of some of the criticism, that some Amazon. Employees have brought against the company from poor working conditions to, increase pressure the time get, it done get it done get it done what's. Your response to that. That. Doesn't, and, total. Describe the experience. That that I helped to build one of the things that we did was bring the safety programs from the best manufacturers, in the world into retail which which. Hadn't, been done before the benefits, that our folks, in the warehouses, and fulfillment, centers get are the same benefits, that my family has. Access to, Amazon. Also raised wages, in 2018. For all US, workers to at least $15. An hour following. Pressure from lawmakers including. Congresswoman, Alexandra. Ocasio, Cortez and Senator Bernie Sanders who, at the time praised. Amazon's, decision, I want. To give, credit where credit is due and. I want to congratulate mr., BAE's house for doing exactly the. Right thing in. Bezos's, words we, listened, to our critics. Critics. Have also called, on Amazon, to increase diversity at, its highest levels, of leadership, would. Amazon arguably, be even more successful if it had more women more minorities near. The top I mean no doubt women, are the primary shoppers. That, that, it's a huge part of their business and so the fact that it hasn't been, male driven, organization. Probably does create some blind spots if you look below Jeff's leadership level, there, are very. Very. Influential. Important. Women, but. Do. We want and, need more absolutely. And especially in the pockets where we know we. Can improve. Improving. And maintaining Amazon's. Company, culture, has kept many employees, like, Andy, jassie from, ever leaving I've, been at the company for 22.
Years Now and I would tell you that the. Culture, is the primary reason, I, remain, here it is a place where you're. Encouraged. To think creatively, where, there, is no ceiling to what you can pursue, where. We're willing to make big investments and, make big bets, and and commit, to them, for long periods of time a. Uniquely. Amazonian. Culture, made, possible, by bezos's, relentless. Focus on, the future I get, to invent. I get to live two to three years in the future is. There something. About Jeff, Bezos that, makes him markedly, different than almost, any other leader on the planet you, know you become a real outlier when you're good in three or four or five different things you know he ended up being a great inventor a great thinker, a great team builder and obviously, very flexible, that's kind of rare. Coming. Up how. Amazon. Transformed. Seattle, I think, you'll find a lot of people here will be very angry, at Amazon. In, downtown, Seattle. You can hardly turn a corner without seeing. Or. Hearing, Amazon's. Impact. Has. Taken over, I call it Amazon built in. 2010. You know I think we had 30% unemployment in the construction trades, and we had no cranes and. I think people were saying boy wouldn't it be nice to have some cranes by, 2013. People were saying what's up with all the cracks. But. For as many cranes, as there are in Seattle today there, are just as many perspectives. On. What Amazon's, growth has meant for the city. Positive. It's a positive and a negative jobs. Opportunity. I think it's beautiful it does nothing to help the city at all it's, growing fast, just takes and takes and takes I, think you'll find a lot of people here will be very angry, at Amazon, Mike. McGinn was elected, mayor of Seattle in, 2009. Right, as Amazon's, downtown, expansion, was accelerating we. All know there was gonna be an expansion but I think though we said, boy they might go from 5,000. Employees to, 20,000. But. They went to 45, after. Losing, a reelection, bid in, 2013. McGinn, ran for mayor again in 2017. And lost, to a candidate, who received money from, a PAC supported. By Amazon, is. An Amazon, largely, responsible for, much of the job growth during your term as mayor actually. We. Saw job growth in many places and again that's a positive we wanted that job growth but a lot from Amazon sure, it's a lot from Amazon. Amazon's. Growth in Seattle has been good for small business been good for the flower shop the barber shop there's. A ripple effect a creates, economic opportunity. For others. Opportunity. However not, shared by all it's. Greatly. Impacted. The cost of living with. Rent, especially. And pushing people out especially like from neighborhoods like this from, a business point of view I realized. They. Said the wheels of progress have. To keep turning on, the other side it does not make the people who won't being pushed out feel very good about it you got, a big imbalance in Seattle between the number of jobs that we've created, and welcomed here in the amount of housing that we've built so, when you have that imbalance, you're going to get an affordability crisis, and we have one today in Seattle, since. 2010. The number of homeless in Seattle, has increased, nearly 34. Percent, to. Address the crisis, the City Council proposed ahead tax in, 2017. That would tax Seattle's, biggest, companies. 275, dollars per, employee, but. Heavy resistance from, Amazon, and the Seattle business community, led, that same City Council to reverse its decision, ultimately. Killing, the funding measure I would. Say that you know things. Like the head tax of Seattle I think are super, dangerous for, cities to implement, they find they, thought it hard and they walk it is no surprise to me that Amazon. Bullies. Its way, council members walk Schama Swan tis a city council, member and one of the few elected, socialists. In the tree she, was a leading voice in the movement, to pass Seattle's, minimum, wage increase, in 2014. And most recently. Ordinary. People in Seattle, that, we need attacks, on big business like Amazon. Big. Business. Big tech big developers, make all the profits, and are making life, unlivable. For the rest of us in this city. Do. You think Amazon's done enough to cushion the impact of, its growth on.
Home. Prices in Seattle, well. First. Of all our objective. Was to take. Care of customers so if we've been successful at that which. Means we've, needed. To hire more employees and, build, out our headquarters. That's, a good thing it's. Not like we built. This headquarters, under, a shroud, and then ripped, it off and said you know that this, was built over years so, the. Community, had the time with us to. You. Know to plan for this, growth I believe. That will the, City of Seattle working, with us will get this right we want to be a great, corporate citizen in addition. To Mary's place a permanent. Homeless shelter set, to open inside. One of Amazon's, new buildings, Amazon. Announced eight million, dollars more in donations to homeless, charities, still. Some say for one of the richest companies in the world it, needs to do more they. Are going to do what they want for their bottom line if. You want something that is socially beneficial we, are gonna have to fight for it as ordinary people I mean look at what happened in New York City in. The fall of 2017. Amazon. Decided, it wanted a new place to call home a second, North American, headquarters and, in, typical Jeff, Bezos fashion. They weren't just going to pick a city like most companies, Amazon. Would hold a year-long competition, for. The seemingly, irresistible. Prize, Amazon's. Hq2 and the potential, for 50,000. New jobs much. Like Amazon, Las Vegas is truly, unique after. A 14, month search and more than 200. Bids from cities across the country New. York and virgin you know we're the big winners of the Amazon, hq2, Hunger. Games I poppin incentives, for Amazon including a helipad at its planned New York location. But. In Queens New York, the winners high wore off quickly, days. After the announcement local. Residents, union and community, leaders led protests. Over the three billion, dollar tax break for their new neighbor we're New Yorkers you. Can't walk all over us because. Of the noise from lawmakers, Amazon. Kind, of decided, to turn the car around that, it wasn't worth this fight. Three. Months later Amazon. Abruptly, canceled, its plans for New York's h22, we. Get a call this morning saying we're taking our ball and we're going home I've never seen anything like it. Shows. That. Every. Day Americans. Still. Have the power to organize and. Fight. For their communities, I think it's a big loss for New York City I think if anything Amazon. Came away looking even. More powerful, they, were able to say, no to New York City Plus. Amazon, wasn't. Exactly walking, away empty-handed. They. Now have access to some all this data all this data Frisco, is primed, to, have you there were over 200, cities across, the country that bid on the h2 too and. They. Put together these, big, packages. Of all of this information things. Like where our future infrastructure, investments, going to go what's. The distribution of our population, that has different kinds of education. Degrees so, now Amazon has this information, about all of these different cities and, it's going to put, that to really produce use, in the coming years as it thinks about where, to cite a new warehouse or new office, or a retail, store no, one else has that. Coming. Up I wish them luck to, be a beauty Amazon. Jeff, Bezos and the other Washington. I think, ownership, of the posters risks, for Amazon, as well as, benefits. Choosing. My car insurance was the easiest decision ever I switch to Geico and saved hundreds. It. Was 2013. And, one of the country's, leading newspapers. Was, in serious, trouble. The. 2008. Financial crisis, was devastating. We'd. Been through a lot of recessions, but we've never seen anything like this. The. Washington Post had been owned by the Graham family since, 1933. But. Now it was struggling, to survive I. Was. Trying to figure out how a newspaper that have been successful, in print could be successful, in the digital world so. Don, Graham chairman. Of the Post at the time talked, to everyone, he could in Silicon, Valley I talked. To Steve Jobs I, talked to gates I talked to Mark Zuckerberg I, talked to the, founders of Google I talked to Jeff over. And over again I, remember. That it, was smart. Sensible. And, not full of himself. Bezos. Came with the influential. Endorsement. Of Warren, Buffett, Warren. At that deck was on our board and Warren said Jeff Bezos is the best CEO in the United States really, yeah. Graham. Made an offer and. Bezos. Took it in, a surprise, move The, Washington Post is, being sold to the founder and CEO of amazon.com, Jeff, Bezos. It. Is the, newspaper. In, the, capital, city of the, most important, country in the world The.
Washington Post has, an incredibly, important, role to play in this, democracy I know that. When I am 90, it's. Going to be one of the things I'm most proud, of. But. Skeptics, wondered, if Bezos, had a different, strategy at, play, I think his intentions are good Republican, billionaires by football teams Democratic, billionaires by newspapers, but. It's also a pretty decent heat shield and prophylactic, it's against antitrust, because if a liberal newspaper is, not, in favor of antitrust, against Bezos, it's. It's just a fantastic, way to put sheep's clothing around a wolf. And. Over. The next five years, Bezos, invested, even more in the nation's capital. Purchasing. The largest, home in the city, choosing. Its suburbs for Amazon's, second, headquarters. And spending. More on lobbying, than any other tech company so far this year. Amazon. Is one of the single most influential, companies in Washington, do, you think owning the Washington Post has given Bezos more clout, among. The political class here in Washington, no as, the owner of Amazon, Jeff could hardly have more clout if he wanted to exercise it but I see no evidence that, Jeff is using the Washington, Post to, advance any, political. Interest. And. Current. Executives, that the posts have stated repeatedly that. Bezos, is not involved, in any editorial, decisions. Has. It ever been a concern, for you at all that the. Interests. Of Amazon, could have motivated, the purchase, of the post I suppose, that's possible but, I think ownership. Of the post as risks, for Amazon, as well as, benefits. The risk is that, when. The post writes a negative article about a politician about, a government it. Can make people unhappy. I think. The Washington Post is a Russian, asset it's, put there for the benefit, the washington post of amazon. That's my opinion, and I think it's a disgrace President. Trump has made a habit of hurling, unsubstantiated. Allegations. At Amazon, and Bezos. On Twitter. Accusing. Him of lobbying, through the Washington, Post calling. The paper fake, news and claiming. Amazon, is scamming, the US Postal, Service. What, started the beef between President, Trump and Jeff Bezos I think fundamentally this is about the Washington Post it's a very influential newspaper, it's a paper that covers Trump very critically and rightly, so, and as a result Trump lashes out I have seen. Other. Presidents. Do the same thing. There. Was a man named Richard M Nixon who was very direct and very personal. In what. He felt about the Washington Post so President, Trump is doing what an awful lot of politicians have now nobody is. Earlier. This year Trump, also took aim at bezos's personal, life after, the National, Enquirer leaked, revealing. Text messages, between Bezos. And the woman he was seeing just. One day after he denounced, his separation, from his wife Mackenzie. President. Trump weighed in. Bezos. Wrote in a medium post that he suspected politics.
Might Be at play in the enquires reporting. And, he wanted to say so publicly The Enquirer came to him and said we, have all these photos and we, could share it unless, you stop accusing us of political. Motivations, so the magazine wanted, to shut Bezos up. But. Instead Bezos, released emails from The Enquirer to, his team and accused. Them of blackmail. And extortion I, was. Shocked I think a lot of people around him were shocked you know this is not someone whose personal life has drawn a lot of attention and, it was a situation that, was extraordinary, in. A statement the tabloid, told CNN, quote the. National, Inquirer acted, lawfully and, stands, by the accuracy. Of our reporting. I think. To this day it is still a mystery about, exactly what happened with The Enquirer. Yet. The scandal, placed Bezos, in an entirely, new, light I think, that he thought and probably believe pretty strongly that he was doing the right thing by confronting, this. This abuse. Of media power and I think was handled brilliantly and I think there's a lot of our goodwill towards, Jeff Bezos because, he's been seen as a responsible, steward of the, Washington, Post so I think his personal reputation has probably never been stronger the, medium post I think that surprised everyone with, very serious allegations. Of blackmail, I'm. Interested, in if, that. Has affected. Amazon, at all and if. It has changed, at all how he leads Amazon. It. Hasn't changed how, he leads. Jephthah's, is engaged. As. He's been for years his, ideas are just as clever I've. Watched him give, messages, to our teams in All Hands meetings and in smaller group, meetings and the messages are spot-on they're, aligned. With our culture and our leadership principles, is the same Jeff that I've, worked, alongside for, 20, years and I hope he stays the same Jeff. Coming. Up the, future, of Amazon. It's. Plausible that Amazon, will, pretty soon know you better. Than your, spouse does better, than your kids you better, than you know yourself, yes Amazon has in the works they're. Deep in research, now on recognizing. Not only who you are but what you are in that moment in time according. To Bloomberg Amazon, is working on a wearable device that can read human, emotions, voice profiles, give you the ability to teach Alexi your voice using. A baseline. Of your biometrics. Alexa. Close, the shades please you know are you depressed Alexa. Tell, Roomba, to start cleaning are you, happy, Alexa. What time is it are you manic have you had a stroke, and you don't realize it yet do you have early onset Parkinson's. Alexa. Turn the TV on these. Are all discoverable. If, there's a big enough database, of, your voice Alexa. Tell, my copy machine to prepare, health care is clearly, in, the next big business they want to offer they. Acquired this company called pillpack which distributes, drugs it's your medication, made, easy they're, working on ways to turn Alexa, into, a doctor, in your home, it's. Plausible that Amazon, or, any of the other big tech companies, will pretty soon know, you better. Than your, spouse does better, than your kids or parents do, better than you know yourself, or, you're willing to admit.
Amazon. Knows our food, intake, he knows our body mass index because of the clothes we were it, knows if we're in a monogamous relationship. To. Make the drones even smarter yes. Sixty. To eighty percent of, the items that we ship could. Be shipped by the drones. That we're working on but. All of that convenience. Experts, say could come at exponentially. Higher cost, to our privacy, in, the, case for example of Amazon, Amazon has. Incredibly. Powerful. Image, recognition, technology. People, really love this image, recognition service. At the moment, we don't have any case law that answers the question who owns your face, yet. Amazon's, facial, recognition software, is, already being, used by, law enforcement across. The country drawing. Criticism from, the ACLU, let's, think about what those powers could mean in the hands of the government and Amazon's. Own employees. Who, say the powerful, technology, must, be carefully, regulated, before, it's put to broad use, you. Have been pretty open about the. Fact that this, is a service that could do Harmon in your words there have been concerns about racial, and gender discrimination, how, do you protect against that we, give pretty clear guidance to the law enforcement agencies that they should only use, the. Predictions, that come back from our facial recognition technology if, they have confidence levels of at least 99 percent and then, only is one element of a, human driven decision. But, I also understand, why people are concerned and, I also think that is very reasonable for governments to put regulations in place that, provide extra guidelines for how the technology, should be used. But. What if the problem is not the user but, the artificial. Intelligence, taking, over all of big tech and its, potential, for bias. Women. Of color are, far more likely to have the secondary, screening at an airport than, men. Or, Caucasian. Women because, you look like an anomaly to a system that for the most part was built by a whole bunch of people who maybe aren't racist but just never occurred to a whole bunch of white men correct one. Reason another tech giant, Google, has been hesitant, to bring this technology to, market so swiftly. Google. Has chosen at least for now not, to, sell facial, recognition technologies. While your competitors, like Amazon, are moving full steam ahead we. Realize that a potential cases in which there isn't a clear regulatory, framework, around how technology, can be used and that you know gives us pause. As. Opposed to some companies who are backing away from supporting, the government we. Are unwavering, in, our support to serve government. Is. It worth it given. What amazon has brought. To the world so, the question is is Amazon, a net good a hundred. Percent yes but the problem, is with, the word net. Fossil. Fuels our net positive for society but we still have emission standards. Pesticides. Are a net positive for our society, but we still have an FDA. Amazon. Has been a net positive does that mean they shouldn't be broken up when they become non-competitive. No they should be broken up. I would. Argue that if you force these companies to break apart you, can say that that's a national security issue because. Quite frankly we, all rely on these companies we, need Amazon. We need Google we need Apple, we need Microsoft so. The question is where, do we go from here. My. View on this is very simple all big. Institutions. Of any kind are going, to be and should be examined. Scrutinized. Inspected. 25. Years, since the age of Amazon, began. Bezos's. Bookstore, is now an American institution do. You swear or affirm underpant, scrutiny, is exactly. What it's getting so, you're telling us you're under oath amazon, does not use any of that data to favor amazon. Products, from. Its ever expanding, size, to. Its impact on the planet. Yet. Nothing, is slowing, amazon, down. Is. It unparalleled, there's. Only a handful, of so many things have grown like this and been, in so many business, and invented so many things and invented, their own technology. To accomplish what they want to do it's, still a growing machine. Jeff. Bezos is a, visionary. And you. Can question, whether or not every decision being made is the right one for what's in the best interest of humanity but. I cannot, think of very many, other people, alive, today, or, in recent, history that. Are as capable, and, as gifted, in long-range thinking, as bezos's. We're. Now big enough to, hurt this planet, we. Have to use the resources of space when. That is possible. When the infrastructure, is in place just as it was for me in. 1994. To start Amazon, you. Will see amazing, things happen, and it. Will happen fast.
I, Guarantee. It. This. Is CNN tonight I'm Laura coats in for Don Lemon and tonight president. Trump's ramping, up his attacks on congressman, receded, to leave a Michigan. Democrat, she, and congresswoman Ilhan Omar were denied permission, yesterday. To, visit Israel, due to their support, of a boycott against. The country over its policies, and it was President Trump who, encouraged, Israel, to do that to, leave was then given, the OK to enter on humanitarian. Grounds so.