From Seeking Alpha:
The announcement yesterday with relation to Amazon’s decision to lower the price of “Prime” for families on government assistance should not come as a huge surprise to investors. Jeff Bezos knows that if he really wants to differentiate his Prime offering from the competition, he needs more services, which ultimately means he needs volume or more customers in the near term. The decision to introduce the monthly payment option last year has resulted in more lower-income families signing up to Amazon Prime in droves.
Now Bezos seems to be doubling down on this shift in Prime growth (from mid to high-income families to lower-income families) by introducing a discounted version of Prime for eligible shoppers. This initiative is for one purpose and one purpose only. As we know Jeff Bezos is not interested in income his company generates in the near term for example but wants to build a serious asset that will destroy the competition over time.
The more numbers and cash flow Amazon Prime can spit out, the more services and benefits he will add to the program over time. This is clear. Bezos can afford to add serious quality to the program when it makes sense to do so. The more services he adds, the better the chance of capturing new long-term customers.
Link to the rest at Seeking Alpha
Ah, no. You are straight tripping. Income disparity, sure, but 5 dollars vs 5 cents, hyperbolic rubbish.
Just like looking at my tax returns before quoting me an insurance premium – we will soon live in a country where some of us pay $5 for a gallon of milk or a gallon of gas – and others of us will pay 5 cents.
“… but wants to build a serious asset that will destroy the competition over time.”
Can’t have anything to do with doing it better for even more buyers/customers, nope, it’s all for the fun of crush/kill/destroy!
Another ADS cry from Seeking Alpha …